Overview

• The government scrapped the draft Digital Competition Bill on August 10 following unified opposition from global tech giants and leading domestic digital platforms.
• The Ministry of Corporate Affairs will commission a comprehensive market study, working with the Ministry of Electronics and Information Technology and industry stakeholders before drafting a new Digital Competition Bill.
• Officials indicate that the ex-ante regulatory framework in the withdrawn draft is unlikely to return, with authorities preferring to rely on the Competition Commission of India’s enhanced ex-post enforcement tools.
• A parliamentary finance committee released a report on August 11 urging proactive ex-ante rules for Systemically Significant Digital Enterprises, including refined thresholds and a rebuttal mechanism for designated firms.
• Critics had flagged the original draft’s broad turnover, user-base and gross merchandise value thresholds as vague and subjective, warning they would impose compliance burdens and invite disputes.