A group of start-ups led by Matrimony.com, People Group, TrulyMadly along with an industry body Alliance of Digital India Foundation (ADIF) have written a letter to finance minister Nirmala Sitharaman suggesting that the upcoming market study on Digital Competition Bill (DCB) should be done in an independent and transparent manner.
The startups said that the terms of reference of the agency that will be tasked to do the market study have to be well-defined. “The objectives of the study should be explicitly articulated at the outset, with adequate consideration of perspectives in favour of ex-ante regulation. Clearly setting out balanced objectives will help avoid ambiguity and ensure that the study generates actionable insights on critical issues such as consumer welfare, innovation, and the competitiveness of Indian startups,” the letter said.
Call for wider expert input
Further, they highlighted that the market study should take into account the views of independent experts and institutions, both domestic and global. “Such expertise should go beyond large consultancies to include academia, think tanks, and civil society voices,” it said.
Startups looking for relaxed criteria in terms of market study agency
The startups pointed out that terms for the selection of market study agency has to be relaxed to encourage participation from a broad set of institutions, including competent academicians and specialised think tanks. “The earlier RFP floated by the Competition Commission of India for a market study on AI required a turnover threshold of Rs 50 crore for three consecutive years from the applicants, inadvertently excluding smaller institutions with domain expertise. To reinforce credibility and public trust, bidding entities should be required to disclose their funding sources and conflicts of interest, if any,” the letter said.
The Indian start-up ecosystem is divided on the DCB with one set of companies opposing the ex-ante regulations that define rules and obligations for the companies beforehand. Those who are favouring the regulations maintain that large technology platforms and digital gatekeepers impose significant barriers on Indian startups, thereby restricting their ability to innovate and compete fairly.