Context

• The committee formed regarding the Digital Competition Law has submitted the draft and report of the Digital Competition Bill (DCB) to the government. 
• This new Digital Competition Bill of India has been prepared on the lines of the Digital Markets Act (DMA) of the European Union.

 Background

• The Central Government had proposed to bring the Digital Competition Bill (DCB) last year to stop the arbitrariness of big tech companies Meta, Amazon, Google etc.
• For this, the government had constituted a 16-member inter-ministerial committee on 6 February 2023. The task of this committee was to prepare a digital competition law by reviewing the existing Competition Act 2002.

 Key Points

• The committee has proposed regulations for large digital companies to curb any potential anti-competitive activities.
• The fine for violating the rules could be up to 10 percent of the company's global turnover.
• It is noteworthy that the committee's recommendations on digital competition law come at a time when there are concerns about anti-competitive practices in the digital sector.
• The draft bill states that pre-liability rules should be made for large digital companies.
• The Bill should be implemented on a pre-identified list of vulnerable core digital services.
• This list should be prepared based on the experience of the Competition Commission of India (CCI), market studies and emerging global practices.
• According to the committee report, it should be ensured that the behaviour of large digital companies is actively monitored.
• CCI should intervene before incidents of anti-competitive conduct occur. It is noteworthy that at present CCI intervenes after the incident of anti-competitive conduct.
• The committee has recommended two bases to identify these big digital companies. These include significant financial strength and spread of companies. Based on these tests, companies will have to self-assess and report to CCI if they fall within its scope. These rules will have a big impact on big companies like Google and Apple.
• The Committee said that CCI should strengthen the capacity of its Digital Markets and Data Unit with experts in the field of technology to keep pace with the rapid growth of digital markets.
• According to the report, the committee has also recommended setting up of a separate bench within the National Company Law Appellate Tribunal to ensure timely disposal of appeals filed against CCI orders, especially those related to digital markets

Important Facts For Exam

Competition Commission of India

• Established : 2003
• Composition: Chairperson & 6 Members
• Statutory Body
• Nodal Ministry: Ministry of Corporate Affairs