Context: Nearly 40 Indian startups have joined forces to pledge support to the draft digital competition bill, describing its proposed 'ex-ante' regulations as potential 'game-changer' in tackling the anti-competitive practices of big tech companies.
Criticism of the Bill
Key Proposals of the Draft Digital Competition Bill
o Self-Reporting Regime: The bill introduces a self-reporting mechanism for companies engaged in "core digital services" to determine their designation as Systematically Significant Digital Enterprises (SSDEs).
o Quantitative Criteria: If in the last 3 financial years, its turnover in India is not less than Rs 4,000 crore; or its global turnover is not less than $30 billion; or
ü Its gross merchandise value in India is not less than Rs 16,000 crore; or
ü Its global market capitalisation is not less than $75 billion; or
ü The core digital service provided by these companies should also have at least 1 crore end users, or 10,000 business users.
o ADES would have the same obligations as SSDES, depending on the level of their involvement with the core digital service offered by the main company.
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