Committee on Digital Competition Law (CDCL) submitted its report along with the Draft Bill on Digital Competition Law | Current Affairs | Vision IAS
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  • Ministry of Corporate Affairs had constituted CDCL on the recommendations of report of Parliamentary Standing Committee on Finance on the subject ‘Anti- Competitive Practices by Big Tech Companies’
     
  • CDCL report lists 9 Anti-Competitive Practices (ACPs) by Big Tech Companies:
    • Anti- Steering Provisions: Exclusionary behaviour hindering users from switching to third party service providers.
    • Platform neutrality: According favourable treatment to own products/platform. 
    • Adjacency/ Bundling and Tying: Forcing consumers to buy related services.
    • Data Usage: Using personal data for consumer profiling.
    • Other ACPs include Pricing/ Deep Discounting, Exclusive tie-ups, Restricting third-party applications, Advertising policies, Search and ranking preferencing.
       
  • CDCL’s Recommendations:
    • Introduction of a Digital Competition Act with ex-ante (before the event) measures to ensure that Competition Commission of India intervenes before instances of ACPs.
    • Regulation of “Systemically Significant Digital Enterprises” (SSDEs), which have ability to influence Indian digital market. 
    • Thresholds and criteria for designation as SSDEs: 
      •  Significant financial strength comprising turnover, market capitalization, etc.
      •  Significant spread of enterprise in Core Digital Services.
    • Monetary penalty for non-compliance with ex-ante obligations restricted to maximum 10% of global turnover of SSDE. 
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