This article
critically assesses the Digital Competition Bill, 2024 (‘DCB’), introduced by
the Indian government proposing an ex-ante framework to regulate the digital
economy. The article argues for a phased implementation of the proposed ex-ante
framework, with revisions to the current draft based on market studies,
practical realities, and jurisprudential prerequisites, especially in light of
India’s nascent digital economy. The article, recognizing that ex-ante law has
become a mainstream tool to regulate the digital economy, highlights the need
for extensive evidence-based assessment of market failures before imposing
extensive regulations. It emphasizes the importance of measuring implementation
costs and potential conflicts with existing regulatory frameworks. The article
analyses the draft DCB’s potential impact on the Indian economy, emphasizing
the need to scrutinize provisions that could affect dynamic growth. For
instance, the DCB’s broad definitions and low thresholds for designating
Systemically Significant Digital Enterprises (‘SSDEs’) could lead to
over-regulation. The article suggests that the DCB should be optimized to avoid
unintended negative consequences for India’s digital economy. It calls for
wider consultations and further studies on the DCB’s impact before its full
implementation.