India must find its own model of regulating digital markets4 min read 21 Sep 2022, 11:07 PM IST
A light regulatory touch must especially prevail in digital markets where our prospects are bright.
India has an opportunity to come up with an innovative regulatory framework that promotes diverse digital markets while enhancing competition and consumer welfare. There is already much ongoing work on regulating competition in the digital domain. The Parliamentary Standing Committee on Commerce has proposed ‘gatekeeper’ style regulations modelled after the EU’s Digital Markets Act (DMA), which comes into force next year. The Competition Commission of India has set up a Digital Markets Unit to ensure fair competition in digital markets. However, for optimal outcomes and to avoid unintended consequences, we must critically examine different types of digital entities and the markets or ‘use cases’ they serve. We must adopt frameworks that suit the complexities of our context rather than mirroring the EU’s approach.