CCI to set up in-house digital mkt data unit for regulating tech platforms

Jyoti Jindgar Bhanot, secretary of the CCI, emphasised on early intervention as a key to ensure that competitive landscape in digital markets is not distorted beyond repair

The Competition Commission of India (CCI) is in the process of setting up an in-house digital market data unit, which may act as a "force multiplier" for the competition regulator, while navigating challenges in regulating digital markets, a senior official said.

"Building capacities is a prerequisite for effective interventions in the markets. Therefore, regulators must equip themselves beforehand with necessary skills and capacities to deal with market distortions in complex technology markets. Realising this, the CCI is already in the process of establishing and operationalising digital market data unit," Jyoti Jindgar Bhanot, secretary (I/c) of the CCI, said.

She emphasised on early intervention as a key to ensure that competitive landscape in digital markets is not distorted beyond repair.

"In the digital space, and particularly in the platform markets, tipping off the market can happen at a pace unimaginable from the perspective of traditional market competition regulations," Bhanot said while speaking at the international conference on "Competition and Big Tech” organised by BRICS Competition Law and Policy Centre and CUTS International.

The conference brought together leading experts, policymakers, and stakeholders from around the world to discuss emerging issues related to competition law across the BRICS nations. Anti-competitive practices in the automobile markets and industry 4.0, an ecological approach to competition law in the new economy, and ex-ante rules and competition law for the digital economy were among the key issues discussed.

Bhanot said ex-ante approach to competition laws is increasingly getting a global traction.

"Such framework seeks to address the unique challenges of the digital economy by setting clear and predictable rules for market entry, data access, interoperability etc. Designing and implementing effective ex-ante rules require a careful balancing of conflicting interests including the need to protect privacy, incentivised investments, and innovation," she added.

Big tech companies such as Google, Apple, Meta, and Amazon are under global scrutiny for allegedly abusing their market position using chunks of user data. Earlier this year, the CCI slapped Google with Rs 936.44 and Rs 1,337.76 crore penalties in two separate cases.

The Ministry of Corporate Affairs has formed a committee for drafting a digital competition bill. The panel is also studying if existing provisions in Competition Act, 2002 and related regulations were sufficient to deal with the challenges in the digital economy. The CCI has to provide secretarial and research assistance and logistic support to the panel.