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[Analysis] Parliament’s Standing Committee Report Calls for Strengthening CCI and Proposes Refinements in the Digital Competition Bill
[Analysis] Parliament’s Standing Committee Report Calls for Strengthening CCI and Proposes Refinements in the Digital Competition Bill

August 14, 2025

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On August 11, 2025, the Ministry of Corporate Affairs (MCA) presented the Report of the Standing Committee on Finance (Committee) on the “Evolving Role of Competition Commission of India in the Economy, particularly the Digital Landscape” in the Lok Sabha. The Report analyses the functioning of the Competition Commission of India (CCI) for regulating digital markets.

We are pleased to note that our previous submissions - (here) and (here) on implementing a National Competition Policy (NCP) and adopting an evidence-based approach in enacting ex-ante provisions under the Digital Competition Bill (DCB) have been recognised and accepted in the key recommendations of the Report.

Major Depositions by the CCI and MCA on Digital Competition Bill

  1. CCI’s Submissions on Ex-Ante Regulations
  • Ex-ante regulatory framework should reflect a balanced approach to achieving the objective of competitive digital markets without stifling innovation.
  • Only the largest tech players with systemic significance should come within its ambit.
  • Ex-ante obligations should target/prevent only such conduct that are unambiguously anti-competitive.
  1. CCI’s Submissions on Integration of Data Protection Laws with Competition Laws
  • Access to data provides a competitive advantage and enables data driven innovations.
  • Lower data protection standards can harm consumers by reducing the quality of services besides creating entry barriers for potential competitors and entrenching the dominant position of established firms.
  • CCI’s role is limited to accessing data as a non-price parameter in anti-competitive practices.
  1. CCI’s Submissions on Protection of MSMEs
  • Lowering the Deal Value Threshold (DVT) under the Competition Act would increase the burden of regulatory compliance on MSMEs and restrict their abilities to grow.
  • Lowering the DVT would lead to inefficient use of human resources by the CCI.
  1. Key Depositions of MCA
  • Increasing the institutional capacity of the CCI: There exists a gap between the actual and sanctioned workforce in the CCI and efforts are being made to equip the regulator with required technical expertise, especially considering the proposed DCB.
  • Market Studies for Ex-Ante Regulations: MCA emphasised that an evidence-based foundation through market studies is required to holistically consider all relevant aspects for ex-ante regulation, as it is in nascent implementational stages even globally.
  • Thresholds under the DCB: MCA highlighted stakeholders’ concerns on relatively lower thresholds for designation as Systemically Significant Digital Enterprises (SSDE). It can lead to unintended consequences of catching entities that are not capable enough to generate any anti-competitive effects. MCA also deposed that there are concerns with the existing broad scope of Core Digital Services and the obligations placed on Associate Digital Enterprises (ADE) under DCB.
  • Rebuttal of SSDE Designation: Existing SSDE designation framework under the DCB does not allow entities to contest and rebut their designation which runs contrary to the Digital Markets Act (DMA) and stakeholders viewed it as a rigid catch-all framework.
  • Protection of MSME: Lowering the DVT would increase compliance and legal costs for MSMEs and restrict their growth. MCA mentioned that MSMEs benefit from targeted advertising and DCB obligations for SSDEs and ADEs will also hurt MSMEs.

Recommendations of the Committee

  • Implementation of National Competition Policy: The Committee at the outset, recommended the implementation of NCP to serve as a cross-sectoral framework to foster a unified competition culture and harmonise various laws and policies. It recommended that NCP should be designed to empower the CCI, ensuring its autonomy and encouraging a cooperative relationship with other sectoral regulators.
  • Evidence-Based Study for Ex-Ante Regulations: The Committee observed that a fundamental shift from a reactive to a proactive, ex-ante regulatory framework is required to address the complexities posed by anti-competitive practices in digital markets.
  • Improving SSDE Thresholds and Rebuttal of Presumption: Thresholds under the DCB must not be overly restrictive and SSDE designation must come with a rebuttal of presumption against such designation. Moreover, it also recommended the inclusion of virtual assistants under the DCB.
  • Strengthening the Capacity of the CCI: Infrastructure development and capacity building initiatives must be actively undertaken prior to implementing the DCB. It also emphasised granting the CCI with necessary financial autonomy and technical expertise especially for its Digital Markets and Data Unit.
  • Protection of MSMEs: The Committee recommended reassessing the deal value threshold (based on market studies) under the Competition Act for ensuring that the threshold does not inadvertently facilitate the acquisition of MSMEs by larger corporations without regulatory scrutiny. It also emphasised that data access must not be curtailed unjustifiably.
  • Effectiveness of Enforcement: Efficient measures must be explored to reduce litigation delays and ensure the effective enforcement of its orders, particularly in complex digital market cases.
  • Inter-regulatory Cooperation and Consumer Welfare: CCI and MCA should priortise inter-regulatory harmony with different sectoral regulators and reduce jurisdictional conflicts.

For more information on this topic, please reach out to Ayush Raj at Ayush@nasscom.in with a copy to Sudipto Banerjee at Sudipto@nasscom.in.


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Ayush Raj
Associate - Public Policy

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