Digital Competition Bill may take longer to be finalised

The proposed Digital Competition Bill could take some more time before being finalised, as further discussions with stakeholders are yet to be carried out.

According to sources, while comments from stakeholders have been received on the draft Bill that seeks to check anti-competitive behaviour by big tech firms in the digital economy, more consultations are ongoing.

“There are still some discussions going on with stakeholders and experts on the Bill. The Ministry of Electronics and Information Technology also held meetings with tech firms and industry bodies and even their comments are awaited,” noted a person familiar with the development, adding that post this a fresh draft will have to be finalised.

Following this, further interministerial consultations may be carried out and a note would be prepared for approval from the Union Cabinet before it can be tabled in the Parliament.

“This is still a lengthy process. The Bill will take time. But at least the draft is out there in the public domain and remains a priority for the government,” noted the source but did not indicate any timeline for when the Bill will be finalised.

Another factor, sources pointed out, is the appointment of a new secretary in the Ministry of Corporate Affairs, who will now be responsible for taking forward the draft Bill. Deepti Gaur Mukherjee, a 1993 batch IAS officer of Madhya Pradesh cadre has taken charge as MCA secretary.

Manoj Govil, the previous MCA secretary, has now been posted as Secretary, Department of Expenditure in the Ministry of Finance. Govil was the chairman of the high-level committee on digital competition law.

Deal Value Threshold

Meanwhile, the long pending notification of the deal value threshold, which was part of the amendments to the Competition Act undertaken last year, is likely to be notified soon by the ministry.

“These will be a part of the Combination Regulations, which are set to be notified in the next few weeks,” said the source.  

The proposed deal value threshold was seen as one of the most contentious provisions of the amendments that aims to keep a check on high value transactions, especially in the digital space. Under the provision, all merger and acquisition related transactions including acquisitions, mergers, and amalgamations that exceed Rs 2,000 crore and involve a target enterprise in India would require approval from the Competition Commission of India (CCI).