Digital Competition Bill: What companies want
Google, Meta and other large technology companies have asked the government to tone down provisions of the proposed Digital Competition Bill, while over 40 Indian startups have called for preventive regulations for large digital platforms. The requests were discussed during consultations held in September, according to a report published on October 6.
The proposed Digital Competition Bill would let the government designate large platforms as Systemically Significant Digital Enterprises, or SSDEs, based on financial, user or qualitative criteria.
Large technology companies asked for four changes:
- A clear appeal route to contest SSDE designation.
- India-specific evidence of repeated violations or market failures before preventive obligations are imposed.
- A study of India’s market structure before rules from other jurisdictions are adopted.
- Proportionate obligations, including lower compliance costs and fewer restrictions on business practices.
Designated companies could face restrictions on favouring their own products, combining user data and restricting third-party apps, without a prior finding of abuse.
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Who it affects
Under the proposed framework, a company could qualify for SSDE designation by crossing an end-user or business-user threshold.
Indian startups including Bharat Matrimony, TrulyMadly and MagicBricks opposed the 2025 pause in the bill’s ex-ante provisions. Their stated position included higher thresholds, a rebuttal mechanism, a dedicated digital regulator and a fairer market study.
The Parliamentary Committee asked the Ministry of Corporate Affairs to refine the thresholds and designation mechanisms. The market study on SSDE thresholds and core digital services is being conducted by the Management Development Institute, Gurugram.
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