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Taking a leaf out of the European regulatory handbook, India has proposed a new digital competition law. Discuss major provisions of draft Digital Competition Bill by India. How does it prevent self-preferencing among the tech giants?

Topic: Government Policies and Interventions for Development in various sectors and Issues arising out of their Design and Implementation.

Q3. Taking a leaf out of the European regulatory handbook, India has proposed a new digital competition law. Discuss major provisions of draft Digital Competition Bill by India. How does it prevent self-preferencing among the tech giants? (150 words, 10M)

Difficulty level: Moderate

Reference: The Hindu

Why the question:

This article was covered in “Text and context” section of The Hindu today. In February 2023, the Ministry of Corporate Affairs (MCA) constituted a Committee on Digital Competition Law (CDCL) to examine the need for a separate law on competition in digital markets.

Key Demand of the question:

To discuss the major provisions of India’s draft Digital Competition Bill and explain how it aims to prevent self-preferencing among tech giants.

Directive:

Discuss – This requires providing an overview of the major provisions of the draft Digital Competition Bill and explaining its mechanisms for preventing self-preferencing by tech giants.

Structure of the Answer:

Introduction:

Introduce the draft Digital Competition Bill, highlighting its inspiration from European regulatory practices and its aim to ensure fair competition in digital markets.

Body:

First part: Major Provisions of the Draft Digital Competition Bill.

Defines digital markets and identifies significant digital intermediaries, Prohibition of Anti-Competitive Practices, Data Portability and Interoperability, Transparency in Algorithm, Consumer Protection

Second part: Prevention of Self-Preferencing.

Ban on Self-Preferencing, Separation of core services from other commercial services to avoid conflicts of interest.

Conclusion:

Summarise the significance of the draft Digital Competition Bill in fostering a level playing field in digital market. Highlight the importance of effective implementation and enforcement to achieve the desired outcomes.