Government alerted about Digital Finance ecosystem, matter reached parliamentary committee on role of CCI

The Standing Committee on Finance is considering the role of the Competition Commission of India (CCI) in the emerging economy, especially in the digital landscape. “The number of challenges in the country and the crowding of big stakeholders in the market is a matter of concern as it is not allowing startups to grow,” the committee chairman, MP Bhartrihari Mahtab, told Business Standard. The committee will delve deeper into the issues related to market congestion by big tech companies and its impact on startups. The panel has so far held one meeting, in which it discussed these issues with CCI chairperson Ravneet Kaur. The committee will study the proposed pre-regulations for the draft Digital Competition Bill prepared by the expert committee headed by Manoj Govil, then Secretary, Ministry of Corporate Affairs. In December 2022, a parliamentary committee headed by Jayant Sinha had presented a report, which called for a ‘Digital Competitiveness Act’ for a transparent and competitive digital ecosystem. It had sought several clarifications and changes in the proposed Competition Amendment Bill 2022.

These ranged from specifying the method of calculating the deal value of transactions and allowing cartels to access settlement mechanisms to introducing impact-based analysis for the CCI and the Director General before detecting anti-competitive behaviour.

Sources said the current discussion of the Standing Committee will take into account the developments so far and take a comprehensive approach on the subject.

The draft Digital Competition Bill proposes pre-conditions under which digital companies will have to inform the CCI that they want to qualify as a systemically important digital enterprise (SSDE) based on certain qualitative and quantitative parameters. Meets the criteria for.

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According to officials, the government wants to limit the scope of the proposed rules to only a few top players and keep startups out of its purview.

Speaking at the CII Global Economic Policy Forum in December last year, Kaur had stressed that the government is very conscious of the fact that India is a hub of innovation and entrepreneurship with a large number of startups, while the European Union (EU) has Various types of laws have been made. Kaur said, “We have the third largest startup ecosystem in the world. Whatever we do outside, we use that as a guide… We must work within the Indian economy, because our role is to provide a level playing field to promote continued competition in the Indian markets.”

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