wordpress blog stats
Connect with us

Hi, what are you looking for?

How to regulate Big Tech firms in India? Parliament panel’s top 3 recommendations

The Parliament suggested major recommendations to cover the dynamics of an online market and monitor unfair digital market practices.

Identifying and defining leading digital market firms, revamping India’s competition watchdog and introducing a competition act for digital businesses—these are some of the top recommendations put forth by the Standing Committee on Finance in the Parliament on December 22 to regulate Big Tech firms in India.

Elaborating on the differences between a traditional and a digital market, the panel emphasised the need for ex-ante regulation—based on market forecasts and behaviour—of big tech companies, rather than ex-post evaluation as is the case with the current system, which mainly focuses on the actual results rather than market predictions.

For such evaluation and regulation based on behaviour analysis, the parliament broadly suggested three major recommendations to cover the dynamics of an online market, wherein businesses tip quickly and expand further often by affecting fair competitive practices.

Why does it matter?

India’s Competition Commission of India (CCI) has ordered an investigation into unfair and monopolistic business practices by Big Tech companies such as Google, AppleAmazon, and Swiggy and Zomato among other online platforms. The Parliament panel has previously observed the need to keep a check on anti-competitive practices in the digital ecosystem. This report further indicates the government’s plan to expand the scope of CCI and also elaborates on the ways in which it is planning to regulate Big Tech firms in India in the near future.


FREE READ of the day by MediaNama: Click here to sign-up for our free-read of the day newsletter delivered daily before 9 AM in your inbox.

Advertisement. Scroll to continue reading.

Here are the three major recommendations for regulation:

1. Identifying Systematically Important Digital Media Intermediaries (SIDI)

  • The Committee recommends that India must identify leading players or those market winners who may negatively influence competition in a digital ecosystem as “Systemically Important Digital Intermediaries (SIDI)”.
  • These SIDIs must be identified on the basis of their revenues, the number of active business and end users, and their market capitalisation.
  • The CCI and the central government must, in collaboration with stakeholders, deliberate on a reasonable definition of SIDIs for ex-ante regulation of their behaviour.
  • Within certain fixed months of being designated as a SIDI, a platform must annually submit a report to the Commission regarding its compliance with its mandatory obligations. It must also publish a non-confidential summary of the report on its website.

2. Digital Competition Act

The Committee recommends that the Indian government should consider introducing a Digital Competition Act to ensure a “fair, transparent and contestable digital ecosystem” in sync with the country’s evolving start-up ecosystem and global policies.

3. Revamping of the Competition Commission of India (CCI)

  • Establishing a specialised Digital Markets Unit within the CCI.
  • The staff must include skilled experts, academics and attorneys enabling the Commission to closely monitor SIDIs and emerging SIDIs, review SIDI compliance, adjudicate on digital market cases and conduct efficient and effective monitoring of digital markets.
  • The unit must also keep a check and track of similar unfair practices of other digital players, even though not specifically designated as SIDIs.

This post is released under a CC-BY-SA 4.0 license. Please feel free to republish on your site, with attribution and a link. Adaptation and rewriting, though allowed, should be true to the original.

Also Read:

Written By

Curious about the intersection of technology with education, caste and welfare rights. For story tips, please feel free to reach out at sarasvati@medianama.com

Free Reads

News

The Commission received complaints against ULLU by the group ‘Gems of Bollywood’,  for sharing “extremely obscene and objectionable content secretively to its subscribers, including...

News

This case highlights a curious intersection of copyright and critique in the digital content world.

News

Google will also provide news organizations and fact checkers with essential training in advanced fact-checking methodologies, deepfake detection, and Google tools like the Fact...

MediaNama’s mission is to help build a digital ecosystem which is open, fair, global and competitive.

Views

News

NPCI CEO Dilip Asbe recently said that what is not written in regulations is a no-go for fintech entities. But following this advice could...

News

Notably, Indus Appstore will allow app developers to use third-party billing systems for in-app billing without having to pay any commission to Indus, a...

News

The existing commission-based model, which companies like Uber and Ola have used for a long time and still stick to, has received criticism from...

News

Factors like Indus not charging developers any commission for in-app payments and antitrust orders issued by India's competition regulator against Google could contribute to...

News

Is open-sourcing of AI, and the use cases that come with it, a good starting point to discuss the responsibility and liability of AI?...

You May Also Like

News

Google has released a Google Travel Trends Report which states that branded budget hotel search queries grew 179% year over year (YOY) in India, in...

Advert

135 job openings in over 60 companies are listed at our free Digital and Mobile Job Board: If you’re looking for a job, or...

News

By Aroon Deep and Aditya Chunduru You’re reading it here first: Twitter has complied with government requests to censor 52 tweets that mostly criticised...

News

Rajesh Kumar* doesn’t have many enemies in life. But, Uber, for which he drives a cab everyday, is starting to look like one, he...

MediaNama is the premier source of information and analysis on Technology Policy in India. More about MediaNama, and contact information, here.

© 2008-2021 Mixed Bag Media Pvt. Ltd. Developed By PixelVJ

Subscribe to our daily newsletter
Name:*
Your email address:*
*
Please enter all required fields Click to hide
Correct invalid entries Click to hide

© 2008-2021 Mixed Bag Media Pvt. Ltd. Developed By PixelVJ