We know that whenever there is a new dimension or way of life arrives into the existing state of society, there are always questions and debates that come up along with it within the society. Sometimes, it requires policy changes as well, just because it becomes very internal to the people of such a society. One of such instances was observed and has been observing every now and then since the arrival of Technological changes and, in other words, the advancements. In order to not ignore the negative and positive effects of such a new digital world, it requires different stakeholders to cooperate and eventually to conclude with possible measures and periodic revision of those policies, rules, and regulations pertaining to emerging tech facilities. This article will look into one of such policy matters and regulation of the emerging technology from the side of competition law.

Role of Competition law:

Before looking into the competition law’s involvement in the digital world, it is important to note the role and purpose of competition law in general across the economies of the world. Whenever there is trade and commerce taking place within or between the countries, the existence of competition law is a must. This is because of the fact that it ensures there are no unfair advantages exercised on the consumer as a whole, and their interests or are not left ignored. This does not mean that competition law focuses only on the welfare of the consumers. They take care of public as well as private entities, and in case any come up, and then the government would regulate the same through such competition policies.
Thus competition commission in India, through its regulations, looks to prevent any adverse practice of competition and to promote the health market by protecting the consumers’ interests and freedom of trade within the territory.

Why does Competition law care about digital space?

The Pandemic-led lockdown, which got initiated in the mid-2020, shocked the entire world, especially the sectors that dealt with service-oriented works. But, somehow, these technological advancements and their ever-emerging wings of creation helped these affected sectors starting from small-scale businesses to multilevel corporations. These corporations will include Amazon, Google, Apple, networking sites such as Facebook and its subsidiaries. In a way, these also helped the economy to be in a better state, if not in the worst level. All must agree to the same. But, while looking into one side of its benefits, did we forget to analyze the kind of power that they would exercise during the time of pandemic as well as after the same, because of the needs that it created by becoming a monopolistic entity in the market.

It is because of this fact; countries across the world have been indulged in defining the kind of market power exercised by these digital corporate entities. At the end of the day, there is service that has been rendered by the corporate entities and forms part of trade and commerce. Competition law ensures that these big techs across the world are not concentrating the power in their own hands when it comes to the digital world and practices. But, on the other hand, competition law also takes into account the needs and interests of these companies and their practices in the economies of scale. So, competition law tries to balance between the welfare and interests of both sides in this digital trade and commerce.

Competition Commission on Digital space:

After looking into the question of why competition law cares about the existence of digital space under its policy arena, it is important to exactly know how these techs are regulated by the competition authorities of specific jurisdictions. At the International level, it is evident that there were some crucial factors that were felt by developing countries while coming up with a policy to regulate these digital firms. Those factors include the presence of dynamic nature of firm’s service such as user-friendly, cost-free services, etc. that puts these regulating countries to ensure related competition laws. In that matter, let us focus on India’s stance on the competition policy over these corporate companies of the digital world, considering the presence of the kind of consumer base that we have across the country.

Referring to the recent US and India Business council meet headed by the chairperson of the Competition Commission of India in July 2020 would give us more insights on the regulation of these digital economies. Para 5 and 6 of this above report talks about the stance of global jurisdictions on regulating these digital companies, and it states that they adopt a norm on the basis of consumer welfare standards to access the market power. They determine such market power also based on efficiency as merits. So, if the digital firm has not complied with the required standard, then they shall be investigated by the competent authority on a competition policy basis. It is also understood that the competition commission of India has been working on the aspect of Mergers and acquisitions of the digital firms, which may be asserted to exercise dominance on the market.

Conclusion:

It is clear from the above facts that the competition policy relating to these big techs is still in a nascent kind of status and still requires more involvement from the side of enforcers of the same. This is to make sure that the market is not corrupted with anti-competitive aspects and monopolistic approaches. As digital platforms require the data of the users and their information to survive, it becomes more important to protect the same through the passing of the Personal Data Protection Bill, 2018, to achieve greater effectiveness and checks on digital platforms.