Many digital companies oppose tighter norms

Mar13,2024


New Delhi: Many tech giantwho will be affected by the proposed digital competition law, have opposed 'ex-ante' regulation or empowering the Competition Commission of India to intervene before anti-competitive conduct. The list not only includes global big companies like Amazon, Apple, Google, Uber and Meta, but also domestic players like Zomato, Swiggy, Oyo and Flipkart.
Paytm and Twitter are among the companies that support the regulatory mechanism proposed by the high-level panel, the report of which was released on Tuesday. The stance of most companies as well as industry bodies was part of the summary of stakeholder presentations chaired by the committee. By Manoj Govil, Secretary, Corporate Affairs.
Opponents, relying on vast troves of consumer data and user base, are of the view that the proposed legislation would increase regulatory burdens and stifle innovation.

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“Amazon is already heavily regulated by the FDI policy, which mandates that it can only act as an online marketplace, not as a seller and it must provide fair terms to all sellers…e -Pre-regulation may be untimely and excessive for the commerce sector and could lead to excessive regulation. “There is a risk of increased compliance costs and regulatory overlap,” Amazon said in its response. Meta also made a similar argument. While suggesting that the experience of other countries does not lead to convergence towards any particular regulatory model.
Apple India said it supports “light touch regulation” that supports innovation. In its presentation, Oyo said: “Digital technology is evolving, and it is important that competition remains fair and transparent. Regulations are designed to promote competition, protect consumer rights, and ensure fair and equitable access to digital services. Must focus on.”
However, industry bodies like NASSCOM and National Restaurant Association of India have supported the plan. NRAI has accused food delivery apps of malpractices, such as giving preferential treatment to certain sellers, targeted platform-funded discounts and minimum trade guarantees, and lack of transparency in search rankings.
Paytm also made a similar argument: “The dominance of large digital enterprises is reflected in the bundling of services, which creates asymmetric pricing and forces developers to source all services from app store operators…”



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