Stakeholders seek more time for feedback on Digi Competition Bill

Industry associations say that consultations on the contentious bill should not be pushed through during the elections

Key stakeholders who will get affected by the contentious draft Digital Competition Bill have asked for an extension of two to six months for providing their comments on it. The bill has recommended an ex-ante regime to regulate digital markets in India.
 

The bill is based on the Digital Markets Act (DMA) of the European Union (EU) which became a law in March this year after a four-year-long consultation process. EU’s legislation, vigorously opposed by big-tech companies, is aimed at regulating their power, based on their size.  
 

The deadline for final comments on the Digital Competition Bill, which has been drafted by the ministry of corporate affairs, is May 15, which the associations say, is too tight.
 

Over eight industry associations and 21 organisations and NGOs have written to the government, asking for an extension of the deadline. These include the Broadband India Forum, Indian Cellular and Electronics Association (ICEA), the US-India Business Council, American Chamber of Commerce in India (AMCHAM), Federation of Indian Chambers of Commerce and Industry (Ficci), amongst others.

The organisations and think tanks which have joined the chorus for an extension include the Internet Freedom Foundation, Consumer Unity and Trust Society, and India SME Forum. 
 

In their letters to the government, the stakeholders have argued that the extension is necessary for a number of reasons: The proposed Bill has far- reaching implications and need careful and deep scrutiny; its impact on consumers need to be thoroughly investigated; the appropriateness of  legislative intervention in the context of India’s innovation aspirations needs to be understood; the potential negative aspects on technology-related FDI need to be ascertained. Overall, a much wider consultation with stakeholders is needed, they argue.
 

They have also pointed out that such a regime is untested even in the EU, which is known for tough regulations. 

They say, moreover, that the consultations should begin only after a new government comes to power and hence the deadline should be extended. 
 

ICEA has said that rather than follow the EU’s untested legislation, a law should be crafted to suit India’s need for digital-led growth, investments and job creation. 

The association added that political oversight is tough to achieve in the midst of elections.   
 

AMCHAM, which has global tech companies as its members, have pushed for a six-month extension, arguing that the bill carries significant economic, growth, geopolitical and national security implications that require the  consideration of multiple ministries.
 

It has also pointed out that the ramifications of the bill extend to various sectors of the digital economy, potentially impacting even non-digital sectors Ficci has said that due to the technical intricacies of the subject, its broad impact and potential regulatory overlaps, a thorough, evidence-based examination of the proposed changes should be undertaken, together with a more extensive consultation process. It has asked for a two-month extensio of the deadline for the submission of comments.

More time
 

• Eight industry associations and 21 organisations and think tanks want an extension of the deadline for submission of comments
   
• The Bill is based on the EU’s DMA Act, which seeks to regulate the power of the big-tech companies
   
• The Bill became a law after four years of consultation in the EU . Stakeholders say it is still “untested”
   
• Many say that consultations should not be pushed through during the elections, suggest waiting until the new government is formed