How will tech giants be affected by the Digital Competition Law?

There have been discussions on Digital competition law. The 16-member Committee on Digital Competition Law recently recommended that ex-ante measures be introduced to complement the current ex-post framework. In this businessline podcast, businessline’s Anjana PV delves into the nuances of Digital Competition Law with KR Srivats, Associate Editor, businessline, on the proposed law and its potential impact on big tech giants. 

The podcast begins with an overview of the committee formed to assess the adequacy of existing competition laws in addressing the challenges emerging from the digital economy. Srivats elaborates on the need for an ex-ante regulatory framework, contrasting it with the current ex-post framework, emphasising the necessity for swift interventions in the dynamic digital marketplace. 

The conversation then shifts to the criteria for categorising enterprises as systemically significant digital enterprises (SSDEs) under the proposed bill. He explains the quantitative and qualitative thresholds, including financial strength and user base, which determine an enterprise's classification as an SSDE. He highlights that only large digital enterprises meeting specific criteria will be subject to the proposed regulations, leaving out smaller players. 

Srivats outlines various reasons for the resistance from big tech giants to the law, including potential business model changes, revenue implications, and aversion to increased regulation and compliance costs. He emphasises the fears of monopolistic entities facing stricter enforcement that could curtail their dominance and innovation. 

Srivats provides concrete examples, such as Google's Play Store policies, to illustrate how the proposed regulations could impact tech giants' operations. 

Listen in to know more about the proposed law.