Parliamentary panel seeks MCA report on CCI's role in digital landscape

The standing committee chaired by Bhartruhari Mahtab, Member of Parliament in its report tabled in the Lok Sabha during the monsoon session backed the need to have an ex-ante regulatory framework

The parliamentary panel on finance has sought an action-taken report from the Ministry of Corporate Affairs (MCA) on the suggestions it made on the evolving role of the Competition Commission of India (CCI) in the digital landscape, according to official sources.

 

Chaired by Lok Sabha MP Bhartruhari Mahtab, the standing committee tabled its report in the Lok Sabha during the monsoon session on August 11. The report backed the need to have an ex-ante regulatory framework to address the complexities such as self-preferencing and predatory pricing while taking a nuanced approach in adopting the Digital Competition Bill (DCB).

 

The panel has asked the MCA to inform the committee about whether any Memorandum of Understanding has been signed with the Ministry of Electronics and Information Technology (MeitY) for prioritising enhancing inter-regulatory harmony.

 

The committee, in its report, had recommended that effective coordination between the CCI and these other regulatory bodies was crucial in ensuring a comprehensive and coherent approach, avoiding regulatory chaos and meeting both competition and sectoral objectives.

 

“This involves proactively collaborating with other sectoral regulators, such as the Data Protection Authority and MeitY, to identify and address jurisdictional overlaps,” the parliamentary panel had said in its report.

 

The CCI said in a press statement that it would work closely with MeitY on areas of mutual interest, noting that constructive dialogue and regulatory coordination will help in fostering trust, innovation, and resilience in India’s digital economy.

 

The MCA is expected to inform the panel about the proposed study into the need for an ex ante framework for regulating anticompetitive conduct in the digital markets.

 

The panel stressed that the ex-post framework of the present Competition Act was ill-equipped to handle the rapid concentration of power in digital markets. “To address stakeholder concerns, the Committee recommends that the Ministry refine the DCB’s thresholds and designation mechanisms to prevent inadvertent capturing of fast-growing domestic firms,” the panel said.

 

The committee has also called for a review of the current deal value threshold, so that acquisitions of MSMEs by larger corporations do not escape regulatory scrutiny.

 

The parliamentary panel’s report stressed the urgency for the CCI to remain agile and continuously adapt its tools and strategies to keep pace with rapid technological advancements and ensure effective competition law enforcement in the evolving digital landscape.