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The Committee on Digital Competition Law, formed by the Corporate Affairs Ministry recommended legislation to regulate Big Tech firms like Google and Meta.
Committee on Digital Competition Law Report: Key Points
- Focus: Regulating Market Power of Big Tech Companies as the existing Competition Act (2002) is not suitable for the digital age.
- Big Tech firms have strong “network effects” that create barriers to entry for new competitors.
- Risk: Digital markets could become dominated by a few large players.
- Solution: Introduce a new Digital Competition Act for governing large digital enterprises (similar to Google and Meta), called Systemically Significant Digital Enterprises (SSDEs).
- This will create a more competitive digital market.
- Penalty: The penalty recommended by the panel would be derived from the entire corporate group’s global turnover.
