Current Status of the Draft Digital Competition Bill

The Ministry of Corporate Affairs (MCA) has provided an update on the Draft Digital Competition Bill (DCB), stating that its introduction timeline is not yet determined. This bill was initiated based on recommendations from the Parliamentary Standing Committee on Finance concerning anti-competitive practices by large digital enterprises. The MCA formed a Committee on Digital Competition Law (CDCL), which conducted stakeholder consultations in March 2023 with various entities, including industry associations, domestic and foreign digital enterprises, and think tanks. Following these consultations, the CDCL submitted its report and the draft DCB in February 2024.

The draft DCB was then opened for public e-consultation on the MCA website from March 12 to May 15, 2024, receiving over 100 responses from a broad spectrum of stakeholders, including legal professionals, industry associations, civil society organizations, and digital enterprises. Additionally, the Ministry of Electronics and Information Technology (MeiTY) held separate stakeholder discussions in June 2024, with their comments still pending. The MCA is currently examining all received suggestions and inputs. Based on these, the Ministry believes that an evidence-based foundation, through market studies, is necessary for considering ex-ante regulation, given its early implementation stages globally. The CDCL’s consultations with small businesses, startups, and major tech firms were part of assessing potential impacts and addressing concerns, aiming to balance innovation promotion with regulating large digital enterprises.

GOVERNMENT OF INDIA
MINISTRY OF CORPORATE AFFAIRS

LOK SABHA
UNSTARRED QUESTION NO. 91
ANSWERED ON MONDAY, JULY 21, 2025/ ASHADHA 30, 1947 (SAKA)

Current Status of the Draft Digital Competition Bill

QUESTION

91. Dr. Shashi Tharoor:

Shri Harish Chandra Meena:

Will the Minister of CORPORATE AFFAIRS

be pleased to state:

a. the current status of the Draft Digital Competition Bill and the time by which it is likely to be introduced;

b. the details of stakeholders consulted under the Pre-Legislative Consultation Policy;

c. whether the Government plans to release the draft Bill for further consultations and if so, the details thereof and if not, the reasons therefor along with the steps taken to maintain a balance between promoting innovation and regulating the influence of large digital enterprises;

d. whether it is correct that the Ministry of Electronics and Information Technology has recommended to the Government that the ex-ante provision in the proposed draft of the Digital Competition Bill be excluded from the legislation at this stage;

e. whether the Government has assessed the possible effects on small enterprises especially start-ups under the proposed ex-ante regulation along with the steps taken to reduce the unexpected outcomes; and

f. the details of the safety measures proposed to mitigate the concerns of major technological firms in Rajasthan and the country?

ANSWER

MINISTER OF STATE IN THE MINISTRY OF CORPORATE AFFAIRS AND MINISTER OF STATE IN THE MINISTRY OF ROAD TRANSPORT AND HIGHWAYS.

(SHRI HARSH MALHOTRA)

(a) to (d): Based on the recommendations of Parliamentary Standing Committee on Finance in its Fifty-Third report on the subject “Anti- Competitive Practices by Big-Tech Companies”, the Ministry of Corporate Affairs (MCA) constituted a Committee on Digital Competition Law (CDCL). Consultations on the Draft Digital Competition Bill (DCB) were conducted in consonance with the pre- Legislative Consultation policy (PLCP) of the Ministry of Corporate Affairs (MCA) as under: –

• During March 2023, CDCL held consultations with entities and stakeholders likely to be impacted by the proposed law including industry associations, domestic and foreign digital enterprises and think-tanks etc. List of stakeholders is placed at Annexure-I.
• Post consultation, CDCL submitted its report in February 2024 along with a draft Digital Competition Bill (DCB).
• Report of the Committee on Digital Competition Law (CDCL) along with Draft DCB was placed on MCA website under the e-Consultation mode from March 12- May 15, 2024. More than 100 stakeholders submitted responses, ranging from legal professionals, industry associations, civil society organisations, and domestic & foreign digital enterprises providing digital services in India. List of stakeholders is placed at Annexure-II.
• Additionally, Ministry of Electronics and Information Technology (MeiTY) organized stakeholder discussions between 18.06.2024 to 20.06.2024. The comments/inputs are awaited.

Suggestions/inputs/comments received from all stakeholders have been examined. Based on the suggestions/comments/inputs received, it is felt that an evidence-based foundation through market studies is required to consider all relevant aspects for ex-ante regulation considering it is in nascent implementational stages globally.

(e) & (f): The CDCL held consultations with key stakeholders and examined both the domestic legal framework and the international regulatory practices for regulation of digital services. Subsequently, during the formulation of the draft DCB, consultations were held with several representatives from trade and industry associations of small businesses, think tanks and major tech firms to seek their views/comments.

Suggestions/inputs/comments received from all stakeholders have been examined.

Annexure-I

1. Amazon

2. Apple India Private Ltd.

3. Bundl Technologies Pvt Ltd. & Swiggy

4. Centre for the Digital future

5. Flipkart

6. Google

7. India Cellular and Electronics Association

8. Internet and Mobile Association of India

9. Meta (Facebook)

10. Oyo

11. Uber

12. USIBC

13. Zomato

14. All India Gaming Federation

15. Alliance of Digital India Foundation

16. Artha Global

17. Asia Travel Technology Industry Association

18. AZB & Partners

19. Confederation of All India Traders

20. Digital News Publishers Association

21. Esya Centre

22. Federation of Hotel & Restaurant Associations of India

23. Indian Council for Research on International Economic Relations

24. MakeMyTrip

25. Newspaper Association of India

26. National Restaurant Association of India

27. NASSCOM

28. Paytm

29. Twitter.

Annexure-II