Digital regulation

Proposed competition law should not stifle innovation

The proposed Digital Competition Bill has been drafted by the 16-member committee on digital competition law and presented for public comment after over a year’s deliberation. It is designed to regulate India’s digital sector more effectively. The Bill proposes an ex-ante approach while giving startups exemption from purview. It empowers regulators to proactively check if a proposed action is in breach of competitive principles. It prescribes possible penalties of up to 10 per cent of global turnover in fines, as well as possible jail sentences. Some proposals may duplicate provisions of the extant Competition Act and this adds to the