Start-ups extend support to Digital Competition Bill in a letter to MCA
In March, 2024 the Committee on Digital Competition Law (CDCL) published its report outlining the challenges associated with anti-competitive practices of digital enterprises such as anti-steering, self-preferencing, tying, and bundling in the digital markets in India. In response to the same, 40 Indian start-ups have come out in support of the draft Bill which proposes ex-ante regulations to curb anti-competitive practices of Big Tech companies. The start-ups, which include prominent names like Matrimony.com, TrulyMadly, Innov8, QuackQuack, Magicbricks, Hoichoi, and Medibuddy, have written to the MCA saying that the bill is a step in the right direction and will address long-standing concerns of Indian start-ups to rein in practices which stifle innovation, limit consumer choice, and hinder the growth of young businesses. The companies have urged the government to move forward with the Bill at the earliest and not give in to the delay tactics of the big tech companies. They have also requested an upward revision of the thresholds for designating Systematically Significant Digital Enterprises (SSDEs).
However some stakeholders such as Internet and Mobile Association of India (IAMAI), a key industry body that represents numerous digital entities including big tech firms, have expressed apprehensions about the draft Digital Competition Bill, suggesting it could have adverse effects on Indian startups and other digital enterprises. As per IAMAI, the proposed ex-ante regulations can dry up venture investments in tech startups, as the thresholds under the draft bill would act as a ceiling to the potential scalability of businesses.
