Digital Competition Bill: Higher Thresholds, Narrower Scope
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.
| Test | Threshold |
|---|---|
| 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 India | 10 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.