Competition Commission of India (CCI) Chairperson Ravneet Kaur lately emphasized the commitment of government in strengthening India’s vibrant startup ecosystem amid formulating ex-ante regulations for digital markets. He was speaking at the CII Global Economic Policy Forum and said that India needs a regulatory framework to promote innovation.
The draft Digital Competition Bill proposes ex-ante regulations and requires digital companies to inform the CCI if they qualify as Systemically Significant Digital Enterprises (SSDEs) based on specific criteria. It contrasts with the existing ex-post framework that addresses misconduct. Kaur was concerned about staff poaching by larger tech firms from the startups. She further added that the CCI is to monitor such activities and take necessary action.
Kaur also discussed the delicate balance between regulation and innovation. The CCI has come up with tight timelines for the approvals of merger and acquisition. She said that the role of CCI is to facilitate merger and acquisition by ensuring consumer welfare. The regulator is mainly more focused on scrutinizing transactions in the zero-priced digital model.
Chief Economic Advisor V Anantha Nageswaran simultaneously called for greater transparency from the regulators. He said that the regulators should hold themselves accountable and simultaneously remain aware of their unelected power limits. He pointed out that the non-financial sectors could benefit from market forces without heavy-handed oversight.
The remarks of both the speakers at the CII Global Economic Policy Forum highlight a critical moment for regulatory framework in India as nurturing innovation and safeguarding competition are the main criteria today. The proposed ex-ante regulations are of course being seen as a potential game-changer in the Indian startup ecosystem.
