On March 12, 2023, the Ministry of Corporate Affairs (MCA) extended an invitation for public commentary on the Report of the Committee on Digital Competition Law alongside the Draft Bill concerning Digital Competition Law. The essence of this Draft Bill is to introduce a proactive ex-ante legal framework in India, specifically targeting the digital service sector. This initiative addresses the inadequacies of the existing ex-post regulations under the Competition Act of 2002, which are insufficient for promptly addressing market distortions and protecting stakeholders from the adverse effects of dominant players identified as “Significant Digital Enterprises” (SDEs). An SDE is characterized by its considerable influence and substantial footprint in providing Core Digital Services within India, possessing a notable capacity to sway the digital market landscape. The committee has articulated specific criteria within the Draft Bill for delineating an entity as an SDE.
This note aims to dissect the implications of the proposed legislation, particularly in the context of the ongoing disputes between Indian app developers and Google. It seeks to evaluate whether and how the new legal measures could potentially empower app developers to negotiate more favourable service fees (core point of the current dispute), scrutinise the additional requisites necessary to maximize the benefits derived from these regulations for Indian app creators and assess their alignment with the European Union’s Digital Markets Act (DMA).
