A group of startups have opposed the proposed separate laws by the ministry of corporate affairs on digital markets that the Indian government is planning to introduce.
A spokesperson for ADIF (Alliance for Digital India Foundation) said, “In case of the absence of such laws, big techs would be the biggest beneficiaries at the cost of Indian digital startups.”
ADIF further commented saying, “Indian startups are seeking very basic rights, including the absence of conflict of interest, Big Tech not resorting to self-preferencing, non-bundling of particular services by Big Tech as announced by CCI in its latest order, thus leading to a fair, transparent and democratic internet ecosystem, to create a level playing field for Indian startups and to promote fair competition in the digital economy.”
This comes at a time when the ministry of corporate affairs decided to form a panel to review the existing Competition Act, 2002.
The Indian government aims to regulate digital markets such as e-commerce platforms, social media, and search engines. The government believes that some platforms have become overpowering and require certain regulations in order to safeguard consumers and also promote competition. Mergers and acquisitions which will value over INR 2,000 crore will need CCI’s approval in case of the firm has established business operations in India.
However, startups have argued that these, if implemented, could create increased compliance costs which will make it harder for Indian startups to compete with larger players in the market. They also think that these regulations will block innovations making it harder for them to introduce new products and services.
Startups are of the opinion that the Indian government should focus on enforcing existing regulations which are more significant to the ecosystem instead of introducing new regulations that would have a negative impact on their businesses.
