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Posted 16 May 2024

2 min read

DCB aims to regulate Systemically Significant Digital Enterprise (SSDE) and their Associate Digital Enterprises (ADEs) to prevent Anti-Competitive Practices (ACPs) by them. 

  • DCB takes a leaf out of the Digital Markets Act (DMA) of the European Union introduced to prevent ACP of tech giants like Google, Facebook, and Amazon.

Key provisions 

  • Ex-Ante Regulation: Facilitates Competition Commission of India (CCI) to intervene to prevent any potential ACPs from occurring.
  • Core Digital Services (CDS): These are services that are susceptible to market concentration and included in a predefined list outlined in Schedule I. 
  • SSDE: Provides criteria for SSDE and also empowers CCI to designate an enterprise as an SSDE if it has a significant market presence in CDS. 
  • CCI may designate an enterprise as an SSDE if it has a significant market presence in CDS. 
  • Obligations of SSDEs: 
    • To report to the CCI about their ADEs which are directly or indirectly involved in the provision of the CDS. 
    • Also, SSDEs are prohibited from giving preference to their products/ services, relying on non-public data of business users operating on its CDS, and impeding the ability of end users to download, install, operate or use third-party applications. 
  • Covers enterprise outside India: CCI has the power to cause an inquiry against such enterprise for non-compliance with this Act or rules or regulations framed thereunder.

Need for DCB 

  • The current ex-post framework (intervening after an event occurs) under the Competition Act, 2002, does not facilitate timely redressal of anti-competitive conduct by digital enterprises. 
  • The present framework may not be effective in addressing the irreversible tipping of markets (permanent dominance of a firm) in favour of large digital enterprises.
  • Prevalence of practice of collection of user data, self-preferencing (i.e., platform favours its services), etc. by big tech giants. 
  • To support an orderly expansion of the digital ecosystem. 
  • Tags :
  • Digital Competition
  • Ex-ante regulation
  • core digital service
  • Digital Markets Act (DMA)
  • Competition Commission of India (CCI)
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