Plan to Revive Digital Competition Bill Raises Concerns Among Industry Players

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The Indian government’s renewed push to introduce the long-awaited Digital Competition Bill has sparked concern among major tech firms and industry stakeholders, who fear the proposed legislation could stifle innovation and impose excessive regulatory burdens on digital businesses.

The draft bill, which aims to curb anti-competitive practices by large digital platforms, proposes significant pre-emptive obligations on so-called “Systemically Significant Digital Enterprises” (SSDEs). These could include curbs on self-preferencing, exclusive contracts, and restrictions on the use of non-public data, which is a move seen as a direct response to long-standing complaints about the dominance of global tech giants.

However, several industry bodies and legal experts have expressed unease over the bill’s potential impact. Critics argue that the framework, while aligned with similar laws in the EU and UK, may be premature for India’s still-developing digital economy. “There is a risk of overregulation that could discourage investment and innovation, especially among startups that rely on platform ecosystems,” said a senior executive from a domestic digital firm.

Others argue that the bill is necessary to ensure fair competition and protect smaller businesses. A parliamentary panel earlier recommended swift legislation to address rising concerns over market concentration, data misuse, and the lack of level playing fields in India’s digital economy. The Ministry of Corporate Affairs has sought public feedback on the draft, and sources suggest the bill could be tabled in Parliament later this year.