India Should Follow Ex-Ante Framework For Regulating Digital Markets: CCI Chief

The Competition Commission of India (CCI) Chairperson Ashok Kumar Gupta on Tuesday (October 25) said the regulator has been pragmatic in levying and quantifying penalties as its enforcement actions are not dissociated from its business and economic realities.

Gupta, who has been at the helm of the CCI for nearly four years, said that India should consider the feasibility of an ex-ante framework for effectively regulating digital markets, news agency PTI reported.

Ex-ante regulations aim at identifying issues in the market beforehand. Through this framework, regulators tell the stakeholders about the measures and responses they need to adopt even before any problem has occurred.

It is pertinent to note that CCI has been extremely vigilant about the big techs and their operations in India in the recent past. Earlier today, the competition regulator has penalised Google for INR 936 Cr in an antitrust probe after slapping a penalty of INR 1,337 Cr last week. Google has been accused of abusing its dominant position with respect to its Play Store policies.

Last week, CCI also slapped a total penalty of INR 392 Cr on MakeMyTrip, Goibibo, and OYO for their alleged unfair business practices.

“We, at CCI, are presently addressing competition concerns in digital markets through our anti-trust enforcement measures, which are essentially ex-post,” Gupta said. 

“However, the need and rationale for ex-ante regulation to supplement these efforts of CCI cannot be over-emphasised in view of the experience gained and difficulties faced by CCI in effecting timely market correction in digital markets,” Gupta added.

Gupta has also emphasised the need for closely considering the feasibility of an ex-ante framework for effectively regulating digital markets, which would supplement the ex-post enforcement actions of CCI. In fact, he also noted that the regulator is at a very critical moment in the evolution of competition law jurisprudence in the country.

“Considering that India has the world’s third-largest startup ecosystem with tech-based startup ecosystem permeating across sectors, it would be entirely appropriate and timely that we, in India, also stay aligned with the frameworks, which are being evolved by our counterparts in regulating digital markets through ex-ante measures lest we remain behind the curve,” Gupta added.

He also stressed that competition agencies across the globe need to collaborate and exchange learnings and experiences going forward.

This year, CCI has also probed the food delivery startups Zomato and Swiggy for allegations around misuse of their dominant position in the market.

CCI is also probing tech giant Meta for its 2021 policy update. Though Meta had recently approached the Supreme Court after the Delhi High Court issued an order that allowed the CCI to continue its probe into the platform, the SC has rejected the plea.

The apex court has stated that the regulator is an independent authority for considering any violation of the Competition Act of 2002, which would not be interfered.