MCA to handle competition issues in digital markets; Meity to look at sector-specific, technical issues

This draws a line between the responsibilities of the two government departments with respect to regulating digital intermediaries such as Facebook, Google, Twitter, etc.

The MCA tweeted this after a meeting between its officials with those from Meity on the proposed digital competition law.

“A meeting between officials of @GoI_MeitY & @MCA21India was held where concerns regarding Systematically Important Digital Intermediaries (SIDIs) were discussed. It has been decided that MCA will look into the competition issues in digital market,” the MCA tweeted.

“@GoI_MeitY will look into sector-specific & technical issues. Several meetings of the Committee on Digital Competition Law have been held in the past, and various stakeholders have been consulted for the same,” it added.

Earlier this year, the central government had set up a ‘committee on digital competition law’ (CDCL) to draft a law governing competition in the digital ecosystem.

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A Meity official told ET that there were concerns raised by some stakeholders about the overlap of responsibilities between various ministries when it came to regulating digital companies. “Given that Meity is also working on a Digital India Act and has issued the guidelines for social media intermediaries, issues were flagged over Meity’s jurisdiction on digital competition,” the official said, on condition of anonymity.

ET had reported last month that a group of seven internet companies had written to the CDCL recommending designation of SIDIs to identify digital gatekeepers. Notably, this recommendation, which was also made by the parliamentary standing committee on finance, was initially opposed by the Internet and Mobile Association of India (IAMAI).

Internet companies in the Indian ecosystem have also been split on the need for an ex-ante law on digital competition. While some have argued for an ex-ante (before the fact) law to ensure larger players are kept in check, others have opposed such regulations saying it could stifle innovation.