Dedicated CCI regulatory wing to keep check on apps in the offing

House panel to soon call foreign Big Tech for discussion

The Competition Commission of India (CCI) may soon create a regulatory wing that will monitor digital applications, said sources who attended the parliamentary panel meeting with start-ups on Thursday. 

“The thought process was to keep a check on the rising complaints as well as to reign in the big techs. A new wing or a department will be created that will monitor and govern the digital app ecosystem in the country,” said a person privy to the details of the discussion held. 

The panel met representatives from Zomato, Paytm, Swiggy, MakeMyTrip, gaming firms, among others, to discuss the rising anti-competition behaviour of some of the players.

The panel, chaired by BJP leader and former Union minister Jayant Sinha, has been looking into various aspects of competition in the marketplace, especially with respect to technology majors.

A member of the Parliamentary Standing Committee on Finance said under the condition of anonymity: “Today only Indian big tech companies were present. They presented their side of the story explaining what problems they face in doing business in India. It is an ongoing process. We have held meetings on the subject five to six times. There will be more meetings where foreign big tech companies such as Amazon, Microsoft and Google may be called." 

He said the Indian big tech companies had been asked to make submissions in writing. “Our report could be an input to the competition amendment Bill, which is scheduled to be introduced during the ongoing monsoon session of Parliament. The idea is to bring changes in the Competition Act to check anti-competitive practices.” 

Business Standard had reported in the past that existing regulations had prevented the CCI from going all out against these companies for anti-competitive activities.

Insiders said the regulator wants more teeth and a wider mandate if it is to take action against big tech. It wants to ensure that the digital markets remain open to new entrants and that competition on and between the digital platforms takes place on merit. “This has become more critical during the pandemic, as an increasing part of economic activity is being channelled through the digital mode and a small number of firms have taken key intermediation positions,” a regulatory source had said in an earlier Business Standard report.

FOR A COMPETITIVE MARKET

• CCI is probing various cases, especially in the digital space, following complaints of alleged unfair business practices
• Existing regulations preventing CCI from taking action against the companies for anti-competitive activities
• Parliamentary Standing Committee on Finance is looking into aspects of competition in the marketplace
• CCI wants to ensure that digital markets remain open to new entrants
• Indian big tech companies have been asked to make submissions in writing