A Brief Explainer: Report of the Committee on Digital Competition Law

In the last week of February, a committee constituted by the Ministry of Corporate Affairs (the Committee on Digital Competition Law) (hereinafter referred to as ‘Committee’) submitted its report on the need for a new digital competition law, alongside its recommendations. The main body of the report is divided into multiple chapters, each focusing on specific areas of inquiry. These chapters comprehensively cover the existing legal framework under the Competition Act, 2002, the challenges posed by digital markets, international regulatory approaches, and the need for a specialized ex ante regulatory framework for digital markets in India. The report also delves into detailed analyses of concepts such as market power, data as a competitive asset, and the roles of algorithms. The recommendations made in this report are substantiated by references to case studies, international practices, and stakeholder inputs gathered through consultations.

The key observations and recommendations of the Committee in the submitted report have also been incorporated into a ‘draft Digital Competition Bill, 2024’ (‘Draft Bill’) published as Annexure-IV of the report document.

While the recommendations of this Committee are not binding on the Ministry, they lay out a clear rationale for a dedicated digital competition law, and are likely to have a significant influence on the shape of the final legislation on this subject. In the following post, I break down the key recommendations and insights drawn from the contents of the detailed report.