The Competition Commission of India (CCI) is in favour of introduction of an ex-ante framework for regulation of booming digital markets in the country and sees it as a beneficial tool in the hands of the regulator, its Chairperson Ravneet Kaur has said.

The competition watchdog is looking at ex-ante regulation as a way of complementing the existing ex-post enforcement mechanism with a view to undertaking proactive enforcement in markets such as digital markets, which are subject to network effects and where tipping of markets happens very quickly, Kaur told businessline in an exclusive interview.

She was underlining CCI’s stand on introduction of an ex-ante framework for regulation of digital markets and the status of the proposed Digital Competition Bill, which has been in the works for about two years now.

Kaur also said that she had, on Monday, deposed before the Standing Committee on Finance headed by BJP leader Bhartruhari Mahtab on Digital Competition Bill.

“We have apprised the Standing Committee on the status of the Bill. We will be responding on whatever queries they may send on that,” Kaur said.

Put simply, an ex-ante approach requires putting in measures to prevent any abusive anti-competitive practices by BigTech, sometimes referred to as Gatekeeper platforms. India currently legally adopts only an ex-post regime, where attempts are made to resolve issues after the damage is done.

Kaur also said that CCI would ramp up its newly created Dedicated Digital Markets Division once the Digital Competition Bill gets enacted. “I am trying to get young people such as data analysts and data scientists. Once the digital competition law comes, we will know the level of staff required and volume of work. Then the division will be fully manned,” Kaur said.

On Meta case

Asked if CCI will go in appeal to the Supreme Court on the NCLAT stay to its order in the WhatsApp privacy policy case, Kaur said, “We have just received the NCLAT order today. We will study it before deciding the future course of action”.

To another question on quick commerce, Kaur said the competition watchdog has so far not received any complaint from any association. She highlighted that CCI can proceed when a formal complaint is filed. “We are also studying the white paper (from CAIT) on quick commerce. Also, CCI received a reference from DPIIT forwarding a reference from sections of retail industry/distributor association on quick commerce related concerns,” she added.

On artificial intelligence related market study, Kaur said the report containing the preliminary findings is awaited on this issue.

Published on January 23, 2025