DIGITAL COMPETITION LAW (Syllabus: GS Paper 2 – Polity)

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Context: The Committee on Digital Competition Law, formed by the Ministry of Corporate Affairs last February, released its report recently, recommending legislation to regulate the market power of Big Tech firms like Google and Meta.


Digital Competition Law

  • Formation: Constituted to study the necessity of digital competition law and propose competition norms.
  • Headed by: The Secretary of the Ministry of Corporate Affairs (MCA).
  • Composition: Comprises 16 members including union secretaries, legal experts, and industry stakeholders.
  • Support: The Competition Commission of India (CCI) will provide secretarial, research, and logistic assistance to the panel.
  • Aim: To foster competition, innovation, and safeguard consumer interests in India's burgeoning digital economy, projected to reach $1 trillion by 2025-26.
  • Functions: Review the adequacy of the Competition Act, 2002, and its rules in addressing challenges posed by the digital economy.


The Competition Act 2002

  • About: It establishes regulations to ensure fair competition within business sectors, fostering innovation and efficiency.
  • Prohibition of Government Interference: The act prohibits undue government intervention in business operations, safeguarding against arbitrary interference that could stifle competition.
  • Replacing Outdated Legislation: It replaced the Monopolies & Restrictive Trade Practices Act of 1969, modernizing regulatory frameworks to suit contemporary market dynamics.


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