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Digital Competition Bill: Higher Thresholds, Narrower Scope

7 April 20251 min read
ECONOMYDigital CompetitionBill: HigherThresholds,Narrower Scope7 April 2025safalsetu.com

Why in the news

Startups feared the draft bill was too broad, so the Centre is considering tougher entry tests and fewer regulated services.

Key facts

  • Drafted with inputs from the Ministry of Corporate Affairs, the Parliamentary Standing Committee on Finance and an expert panel.
  • Ex-ante rules act in advance against anti-competitive conduct; ex-post acts after harm.
  • SSDE needs one financial test and one user test.
TestThreshold
Domestic turnover (3-year average)₹4,000 crore
Global turnover$30 billion
GMV in India₹16,000 crore
Global market cap$75 billion
End-users or business users in India10 million or 10,000

Likely revisions

  • Fewer service categories out of the nine (search, social networking, video sharing, messaging, operating systems, browsing, cloud, advertising, intermediation).
  • Higher thresholds; periodic compliance reporting for gatekeepers stays.

Significance

  • Startups get relief; Big Tech stays under scrutiny for dominance.

Exam angle

  • SSDE: Systemically Significant Digital Enterprise; regulation type: ex-ante.

Test yourself

1. The draft Digital Competition Bill proposes which type of regulation of big digital platforms?

It seeks pre-emptive (ex-ante) rules against anti-competitive behaviour.

2. How many digital segments did the original draft Digital Competition Bill cover?

Nine segments, from online search to online intermediation, were covered.

3. In the draft Digital Competition Bill, SSDE stands for:

SSDE means Systemically Significant Digital Enterprise.