**Executive Summary**
This document addresses digital market regulations in India, specifically focusing on measures to strengthen competition and address monopolistic practices by foreign tech firms. It references the Competition Commission of India (CCI) and the Competition (Amendment) Act, 2023. The document also mentions ongoing reviews of legislation and stakeholder consultation.
**Key Points / Main Content**
* **Competition Commission of India (CCI) Powers:**
* The CCI is empowered by the Competition Act, 2002, to investigate anti-competitive conduct by enterprises, including large tech firms, under Sections 3 and 4.
* The CCI enforces competition across sectors, including digital markets.
* The CCI investigates anti-competitive practices by major global tech firms and imposes penalties, cease-and-desist orders, and other remedies.
* **Competition (Amendment) Act, 2023 Reforms:**
* Introduces a ₹2,000 crore Deal Value Threshold and Substantial Business Operations in India (SBOI) criterion to capture high-value digital market transactions.
* Implements settlement and commitment mechanisms for faster case resolution.
* Includes hub-and-spoke facilitators within cartel provisions.
* Introduces global-turnover-based proportional penalties.
* **Review and Amendment of Regulations:**
* The government continuously reviews legislation, rules, and regulations.
* The government undertakes appropriate measures to amend regulations based on recommendations, suggestions, learning outcomes, and stakeholder consultation.
**Impact Analysis**
**Stakeholder: Competition Commission of India (CCI)**
* **Impact:** The CCI has increased authority and new tools to regulate digital markets and address anti-competitive practices.
* **Action Required:** Utilize the new powers and provisions granted by the Competition (Amendment) Act, 2023, to effectively regulate digital markets.
**Stakeholder: Large Technology Firms (Especially Foreign Tech Firms)**
* **Impact:** Increased scrutiny and potential penalties for anti-competitive conduct in India. The Deal Value Threshold and SBOI criterion could bring more transactions under CCI review.
* **Action Required:** Ensure compliance with the Competition Act, 2002, and the Competition (Amendment) Act, 2023. Be prepared for potential investigations and penalties.
**Stakeholder: Indian Digital Platforms**
* **Impact:** Increased protection from potential anti-competitive actions by dominant global tech companies.
* **Action Required:** Monitor actions by dominant global tech firms and be prepared to report anti-competitive activities to the CCI.
Key Entities Referenced
Competition Act, 2002: Empowers the Competition Commission of India to inquire into anti-competitive conduct.
Competition (Amendment) Act, 2023: Introduces key reforms to empower the Competition Commission of India to effectively regulate digital markets, including a Deal Value Threshold and SBOI criterion.
Competition Commission of India (CCI): The primary regulator empowered to inquire into anti-competitive conduct and regulate digital markets.
Section 3: Deals with anti-competitive agreement under Competition Act, 2002
Section 4: Deals with abuse of dominance under Competition Act, 2002
GOVERNMENT OF INDIA
MINISTRY OF CORPORATE AFFAIRS
LOK SABHA
UNSTARRED QUESTION NO. 2342
ANSWERED ON MONDAY, DECEMBER 15, 2025/ AGRAHAYANA 24, 1947
(SAKA)
DIGITAL MARKET REGULATIONS
QUESTION
2342. Shri Arup Chakraborty:
Will the Minister of CORPORATE AFFAIRS
be pleased to state:
(a) the measures taken by the Government to strengthen the competition
framework after the anti-competition actions by the European Union and
the US Department of Justice against Google and Meta respectively;
(b) the manner in which the Government is planning to align India’s digital
market regulations with global standards to improve enforcement
mechanisms against monopolistic practices by foreign tech firms;
(c) the specific measures taken/being taken by the Government to protect
Indian digital platforms from potential anti-competitive actions by
dominant global tech companies; and
(d) the timeline set for regulatory review and enforcement?
ANSWER
MINISTER OF STATE IN THE MINISTRY OF CORPORATE AFFAIRS AND
MINISTER OF STATE IN THE MINISTRY OF ROAD TRANSPORT AND
HIGHWAYS.
(SHRI HARSH MALHOTRA)(a) to (d) : The Competition Commission of India (CCI) is empowered
under the Competition Act, 2002 to inquire into anti-competitive conduct
by enterprises, including large technology firms. CCI inquires into conduct
that may amount to anti-competitive agreement under Section 3 or an
abuse of dominance under Section 4. Through its enforcement actions
across sectors, including digital markets, the CCI ensures that markets
remain competitive and contestable. The CCI has taken cognizance of
alleged anti-competitive practices by big tech firms including major global
tech firms and ordered investigation and where violations were
established imposed monetary penalties along with cease-and-desist
orders and other remedies.
Further, to address challenges in digital markets, the Competition
(Amendment) Act, 2023 introduced key reforms that empower the
Competition Commission of India (CCI) to effectively regulate such
markets by introducing inter-alia, a ₹2,000 crore Deal Value Threshold
along with the Substantial Business Operations in India (SBOI) criterion to
capture high-value digital market transactions that previously were not
within the purview; settlement and commitment mechanisms for faster
case resolution; inclusion of hub-and-spoke facilitators within cartel
provisions; global-turnover–based proportional penalties.
In addition, the review of legislation, rules and regulation is a
continuous process and based on the recommendations, suggestions, and
learning outcomes, the Government undertakes appropriate measures to
amend the same from time to time to meet emerging requirements,
following due stakeholder consultation.
******