The Corporate Affairs Ministry (MCA) has formally extended till the end of October the tenure of the 16-member Committee on Digital Competition Law (CDCL). 

This Panel, originally to submit its report by May 6, is now expected to submit its report by the end of October. The executive order extending the tenure of the Panel has been issued, sources said.

The Panel, which has been tasked to frame a draft Bill of proposed digital competition law, has not met even once in the last two months, sources said.

The inter-ministerial Panel Chaired by MCA Secretary Manoj Govil is now expected to meet for the last time in the next fortnight to finalise the draft of the proposed Bill on digital competition law, sources added.

Indications are that the proposed Bill on digital competition law may miss the Winter Session, given that the Panel may submit its report only by end October.

This inter-ministerial Panel was set up on February 6 and tasked to finalise its report and frame a draft for the proposed law in three months. 

However, the Committee has overshot the initial time allocated, and the panel’s tenure has been extended several times since May 6.

The proposed framework is unlikely to be entirely patterned on the Digital Markets Act enacted by the EU. This is significant as there has been wide speculation that India’s proposed digital competition law will be based on DMA.

CDCL has been tasked to examine the need for an ex-ante regulatory mechanism for digital markets through separate legislation. It has also been tasked to prepare a draft Digital Competition Act. 

The Panel will also have to review whether existing provisions in the Competition Act and the Rules and Regulations framed under it are sufficient to deal with the challenges that have emerged from the digital economy. 

India is contemplating enacting a Digital Competition Act at a time when there is growing concern among policymakers around the world about the power and dominance of tech giants in the digital economy and the need to ensure a level playing field for all players in the market. 

Competition law experts are still divided on whether India needs a separate Digital competition law or  not. Some still contend that it would be premature for India to go in for an ex-ante framework through a separate law to prevent anti-competitive conduct of Big Tech in digital markets.

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