Earlier this week, the Committee on Digital Competition Law (CDCL) proposed ex ante regulation for large digital companies.
Big Tech companies such as Google, Apple, Flipkart, Amazon, and Uber opposed ex-ante regulation while giving their suggestions to the expert committee on digital competition law. While Twitter and Paytm have favoured the norms in its stakeholder submission, it said it was in favour as long as only large digital enterprises with a critical mass were subject to the regulations.
A government committee submitted a report this week recommending ex-ante competition regulations for big tech firms to monitor their behaviours and curb unfair business practices. Comments on the report are being accepted until April 15.
Calling it untimely and excessive and over-regulation, Amazon said in its stakeholder submission that it was already heavily regulated by the foreign direct investment policy, which mandates that it can only act as an online marketplace and not as a seller, and that it should provide fair terms to all sellers, reported Business Standard.
Apple submitted that the Digital Markets Unit set up by the Competition Commission of India (CCI) in 2023, should be adequate to address any capacity constraints faced in regulation. Additionally, Apple suggested that CCI open a regional office in Bengaluru to get easy access to the technology ecosystem of the country.
Apple’s dislike for ex-ante regulations is not unexpected given its battle with the EU’s Digital Markets Act, which designated it as “gatekeeper” and which Apple repeatedly opposed.
Flipkart has said that the existing ex-post regime in the country is well-equipped and can effectively regulate digital markets in India.
“A one-size fits-all approach similar to the DMA model would be unsuitable for effective regulation of digital markets since it remains untested,”
Flipkart responded to stakeholders, states report.
MakeMyTrip said that they were s in favour of ex-ante regulation only to the extent that they were made applicable to select large horizontal platforms that have created economy wide ecosystems.
Source: India.com
