MCA To Commission Study On Digital Competition Bill

The corporate affairs ministry (MCA) is commissioning a market study to review qualitative and quantitative thresholds for big tech giants like Google, Meta and Apple.

In a request for proposal (RFP) issued on November 3, the ministry noted that it will select an agency to evaluate various aspects of the digital competition Bill (DCB), issued by a panel last year. The study will also look to assess the impact of the ex-ante framework proposed by the same panel on smaller players, including startups.

Ex-ante frameworks are a set of rules put in place before an event occurs to proactively shape behaviour and prevent anti-competitive conduct. These norms guide companies’ actions from the outset by establishing specific obligations and standards.

As per the RFP, the study will draw data and feedback from multiple stakeholders, including ecommerce platforms, think tanks, startups, industry experts and civil society organisations. The panel will also survey key stakeholders, collate data, analyse and prepare recommendations.

The ministry intends to wrap up the bidding process for selecting the applicant by January 2026.

Here are the key objectives of the study:

• To review and evaluate the proposed qualitative and quantitative thresholds outlined in the draft Digital Competition Bill
• To review the list of proposed core digital services included in Schedule I of the draft Bill
• To evaluate the implications of the draft digital competition norms on digital services and their stakeholders
• To evaluate the potential impact of DCB on competition and market entry
• To assess the potential impact of the proposed ex-ante competition framework on smaller players, including startups and MSMEs

With respect to the proposed qualitative and quantitative thresholds under draft digital competition rules, the study will gather “empirical evidence through market studies/impact assessments” in two areas – financial and user – to determine the companies that would be under the law’s ambit.

The study will also evaluate whether these limits meet their objective. They will also look into what enhancements are needed to the proposed thresholds for identification of systemically significant digital enterprises (SSDEs) under current market scenarios.

The selected agency will also study the impact of the DCB on big tech companies and lessons that can be drawn from international case studies.

It will also pitch recommendations to foster a competitive digital environment that “promotes innovation” while regulating the dominance of large digital players. Additionally, it will also suggest measures to address the concerns of major tech firms while ensuring a level playing field for all participants in the digital sphere.

It is pertinent to note that multiple big tech giants had opposed ex-ante regulations in their submissions last year before the panel headed by then corporate affairs secretary Manoj Govil.

Last year, the panel had recommended a new antitrust law, with an ex-ante framework, to regulate only SSDEs, and left out smaller players. It had submitted the draft digital competition bill to the ministry of corporate affairs (MCA), along with its report.

As per the panel’s draft bill, a tech firm is systemically significant if it satisfies any of these financial thresholds – a domestic turnover of more than INR 4,000 Cr, a global turnover of more than $30 Bn, or a gross merchandise value in excess of INR 16,000 crore in India (or global market capitalisation of $74 Bn). Tech firms with 10 Mn users or 10,000 business users in India would have also been treated as SSDEs under the draft norms.

Subsequently, the Centre was supposed to assess the draft bill and the report before firming up its own bill after due consultations. However, there has been no clarity on that front.

The Bill has been in limbo as several big tech companies, during consultations, sought a review of the thresholds despite maintaining their opposition to the ex-ante framework. The government then, in July this year, said it could commission a market study before preparing the final bill.

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