CCI To Examine Big Tech’s Market Position & Data Advantage

CCI To Examine Big Tech’s Market Position & Their Data Advantage

SUMMARY

Data can help them change the course of consumer behaviour online, Gupta implied

Thus, the Competition Amendment Bill is being proposed, which will deepen the scope of inter-regulatory consultations

The challenges now are multi-dimensional and thus, the policies and regulatory framework need to adapt to a complex market, he said

The competition commission of India (CCI) chairperson Ashok Kumar Gupta has stated that as India is one of the fastest growing digital economies, distortion in the market will be looked at and corrected. That is to say, CCI is examining the market position of big tech companies and how they ‘shape and influence consumer choices’.

Gupta was addressing the CII’s ‘Annual Conference on Competition Law and Practice when he mentioned that these platforms have control over ‘user data and online real estate’. This data can help them change the course of consumer behaviour online. He added that these companies [big tech] impact opacity in policies as they have a data advantage over other businesses and sometimes even their competitors.

Some problems that Indian businesses have previously cited include Google’s dominance of online news disbursement (report filed by the digital news publishers’ society), Facebook affecting (political) voting behaviour of its users, Amazon’s deep discounting behaviour, Twitter’s reluctance to comply with IT rules, and more.

Since the challenges are multi-dimensional, the policies and regulatory framework need to adapt to the complex market. Other concerns the framework would likely include will be identifying problems around personal and non-personal data, building new categories and bringing about quicker remedial actions.

Competition Amendment Bill & Its Impact

Last month, the Competition Amendment Bill, 2022 (an amendment to the Competition Act, 2002) was placed in the Lok Sabha. Since the market dynamics are constantly evolving, the amendment bill proposes a larger framework to include all the technological advancements and other factors (than price) that now influence the competition in the market.

Further, the development comes shortly after the CCI has been grilling major tech giants such as Google, Facebook, Netflix, Apple, Twitter, Amazon, Uber and more regarding their deep discounting tactics, anti-competitive behaviour and their influence and dominance on customers using data.

Talking about the bill, Gupta also stated that it deepens the scope of inter-regulatory consultations, avoiding any regulatory overlaps.