The government is likely to review the Competition (Amendment) Bill, 2022 and take on board at least some recommendations of the Parliamentary Standing Committee on Finance on regulation of anti-competitive behaviour of Big Tech. Sources indicated that recommendations, aimed at ensuring the Competition Commission of India has sufficient teeth to deal with the regulation of the sector, could be taken up in the Amendment Bill.

“The idea is still at the initial stage. The ministry of corporate affairs will examine the report and see the feasibility of adding some amendments to the Competition (Amendment) Bill. However, there is a view that some of the recommendations are complementary in nature to the Bill and ideally can be taken up in it,” said a person familiar with the development.

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The ministry is already reviewing the report of the panel, chaired by BJP MP Jayant Sinha, on the Competition (Amendment) Bill, 2022 which has suggested significant changes to the proposed legislation.

“Implementing at least some of the suggestions on regulating Big Tech and aligning it with the proposed legislation would provide more comprehensive guidelines for the sector to curb anti-competitive behaviour,” said the source, adding that it has to be seen which provisions can be brought about through a notification and which would require an amendment to the law.

The Standing Committee on Finance, in its report on regulating anti-competitive behaviour of Big Tech firms, has called for ex-ante evaluation of their behaviour, as well as a Digital Competition Act and giving more powers to the CCI, including setting up of a specialised Digital Markets unit.

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Calling for a definition of Systemically Important Digital Intermediaries (SIDIs), the panel had also said that they must report to the CCI and provide annual reports and also notify it of any possible concentration where the merging entities or target of concentration provides services in the digital sector, irrespective of the size of the transaction. The Competition Amendment Bill has already proposed a Rs 2,000 crore deal value threshold aimed at M&A activities in the sector.

The government has found it challenging to regulate the digital sector, especially Big Tech for anti-competitive and unfair business practices, largely due to a lack of regulations. The CCI had in October this year imposed a penalty of `936.44 crore on Google for abusing its dominant position with respect to its Play Store policies and had also issued a cease-and-desist order.

Experts also noted that in the past, Big Tech companies have been at loggerheads with competition authorities with regard to issues like processing of personal data.

“The Committee, while acknowledging the distinction in the way digital markets operate in comparison to traditional market places, has noted that digital markets are prone to significant anti-competitive behaviour and called for an alternate framework to keep such practices under check,” said Harsh Walia, Partner, Khaitan & Co, adding that some changes like introducing the concept of SIDIs and related obligations, revised definitions of ‘exclusive dealing agreement’, ‘tie-in arrangements’ may be required in the recently issued Competition Bill in view of the report.

The interplay with sectoral laws will also need to be addressed as jurisdiction between different regulatory authorities has been a bone of contention previously, Walia further said.