The Ministry of Electronics and Information Technology (Meity) has called for meetings with the Ministry of Corporate Affairs (MCA), and various industry associations representing homegrown companies, startups, and big techs to discuss concerns raised regarding the draft Digital Competition Bill (DCB).
The first meeting, held on June 18, convened by IT secretary S Krishnan and attended by various MeitY officials and peers from the Competition Commission of India (CCI), AMAI, Federation of Indian Fantasy Sports (FIFS), Digital News Publishers Association (DNPA), Alliance of Digital India Foundation (ADIF), Indian Newspaper Society (INS) and MakeMyTrip.
During the meeting IAMAI raised the issue far-reaching effects of the Bill on sectors such as investments and requested the government to take a relook at the threshold for designating a company as Systematically Significant Digital Enterprises (SSDEs), according to a report by Moneycontrol.
According to the draft DCB, a company can be designated as an SSDE if they meet certain, specific thresholds. If designated as an SSDE, these companies will be subjected to additional compliances.
June 18th meeting also saw ADIF who advocated for the Bill. Meanwhile, IAMAI and MMT suggested a relook at the thresholds for designating a company as SSDE in the draft bill.
At the same time, stakeholders, including IAMAI, ADIF, DNPA and INS, deliberated over the issue of revenue sharing with Big Tech companies.
The second day, i.e. June 19th saw industry arguing that the bill may severely impact smaller companies and startups and eventually there was a consensus that the ex-ante regulation like DCB Bill will severely impact startups and innovation. The meeting saw representations from Internet and Mobile Association of India (IAMAI), Federation of Indian Fantasy Sports (FIFS), along with ADIF, DNPA, and INS.
While there was consensus achieved on the Bill’s impact on the industry, the opinion was split over the necessity of the bill.
Recently, a group of IAMAI voiced their dissent to the industry body’s submission of the draft DCB exhorted the Ministry of Corporate Affairs to move ahead with ex-ante regulations at the earliest.
In a letter to the Ministry, four digital companies including Bharat Matrimony, Match Group, ShareChat, and Hoichoi have expressed a divergent view from the submission made by IAMAI. These companies have emphasised the need for ex-ante regulations to curb anti-competitive practices of Big Tech companies to address long-standing concerns of Indian startups to rein in practices that stifle innovation, limit consumer choice, and hinder the growth of young businesses.
The letter however underlines that the criteria for the designation of Systematically Significant Digital Enterprises (SSDEs) under the Bill requires reconsideration from the point of view of its impact on Indian startups. The letter suggests revising the thresholds upwards to make sure that nascent digital products and services remain protected and only the real gatekeepers of the internet are targeted under the Bill.