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Topic : IAMAI on Proposed Digital Competition Bill (DCB)
GS-2 Mains : Governance
Revision Notes
Context:
The Internet and Mobile Association of India (IAMAI) has differing views on the proposed Digital Competition Bill (DCB). This explainer dives into the bill’s purpose, key proposals, concerns, and the government’s stance.
Background:
- The DCB emerges from the need to update India’s competition framework for the digital age.
- It aims to address concerns about anti-competitive practices by large tech companies (Big Tech).
- The bill proposes ex-ante regulations – proactive measures to prevent such practices.
Key Proposals:
- Identifying Systemically Significant Digital Enterprises (SSDEs) and imposing restrictions.
- Prohibitions on self-preferencing (favoring their own services) and anti-steering practices (limiting user choice).
- Complementing existing reactive (ex-post) measures with proactive (ex-ante) ones.
- Penalizing anti-competitive practices.
- Restricting data cross-sharing and breaking up app/service groups serving specific companies.
Purpose:
- To create a level playing field in the digital market, fostering fair competition and innovation.
- To ensure a fair, transparent, and contestable digital ecosystem.
- To protect smaller players, including startups, and promote a balanced digital ecosystem.
Concerns and Criticisms:
- The bill might be overly restrictive, hindering innovation and harming Indian tech companies.
- It could make consumers more vulnerable to cyber fraud.
- Potential negative impact on investments in tech startups and MSMEs.
Government’s Stance:
- The government emphasizes regulating anti-competitive practices, not just targeting large players.
Conclusion:
The DCB is a critical step towards regulating India’s growing digital economy. Striking a balance between promoting innovation and safeguarding competition is crucial. Public scrutiny and debate will determine the bill’s final form.
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