Parliamentary Panel on Finance Report
The parliamentary panel on finance has requested an action-taken report from the Ministry of Corporate Affairs (MCA) regarding its suggestions on the evolving role of the Competition Commission of India (CCI) in the digital landscape.
Key Recommendations and Insights
- The report, tabled by Lok Sabha MP Bhartruhari Mahtab, emphasizes the necessity of an ex-ante regulatory framework to tackle issues like self-preferencing and predatory pricing.
- The panel has inquired whether an Memorandum of Understanding has been signed with the Ministry of Electronics and Information Technology (MeitY) for inter-regulatory harmony.
- Effective coordination between the CCI and other regulatory bodies, such as the Data Protection Authority and MeitY, is crucial to prevent regulatory chaos and meet both competition and sectoral objectives.
- The CCI aims to work closely with MeitY, emphasizing constructive dialogue and regulatory coordination to enhance trust, innovation, and resilience in India’s digital economy.
Ex-Ante Framework and Digital Competition Bill
- The MCA is expected to study the need for an ex-ante framework to regulate anticompetitive conduct in digital markets.
- The panel argues that the current ex-post framework under the Competition Act is inadequate for addressing the rapid concentration of power in digital markets.
- Recommendations include refining the DCB’s thresholds and designation mechanisms to prevent inadvertently capturing fast-growing domestic firms.
Deal Value Threshold Review
- The committee has called for a review of the current deal value threshold to ensure acquisitions of MSMEs by larger corporations are subject to regulatory scrutiny.
Conclusion
The panel underscores the urgency for the CCI to remain agile and adapt its strategies and tools to keep pace with technological advancements, ensuring effective enforcement of competition law in the digital landscape.
