Law to regulate Big Tech firms soon

The Committee on Digital Competition Law has recommended legislation to regulate the market power of Big Tech firms like Google and Meta.

The committee recommended the creation of a new law, the Digital Competition Act, to “introduce an ex-ante legislation specifically applicable to large digital enterprises, to supplement the Competition Act”.

Such a framework was designed at a time when the extent and pace of digitalisation as is witnessed today could not be foreseen.

The recommendations, if implemented, would better equip the Competition Commission of India (CCI) to rule on competition matters for tech firms.

The Big Tech firms, owing to their “network effects”, are able to rapidly increase their user base and establish market power that is difficult for a new entrant in the industry to dislodge.