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.
