In the dynamic landscape of India’s economic growth, the Competition Commission of India (CCI) has become a key institution protecting market competition, freedom of trade and upholding consumer interests.
After a period perceived by some as relative quietude, the CCI has roared back to life with a series of impactful decisions and initiatives.
This resurgence comes in the wake of the Competition Amendment Act 2023, a landmark legislative reform that introduced futuristic tools for regulatory oversight in a digital-first economy.
While critics viewed the CCI’s interim period as inactive, the Commission was, in reality, laying the groundwork to operationalise these reforms — crafting regulations with extensive consultations with stakeholders, refining and simplifying processes, and preparing for a wave of challenges posed by digital markets, artificial intelligence, and big tech dominance.
Framing Regulations
The Competition Amendment Act 2023 empowers CCI with innovative mechanisms such as deal value thresholds (DVT) to capture mergers and acquisitions in the digital domain that might otherwise escape scrutiny due to negligible turnover figures. This is particularly significant in an age where data and intellectual property — not conventional revenue — drive valuations.
The Act also introduced settlement and commitment frameworks to expedite case resolution, leniency plus mechanisms to enhance cartel detection, and turnover-based penalties for ensuring proportionality. Recognising the complexity of these provisions, the CCI has spent the past year fine-tuning its operational strategies and creating a compliance-ready ecosystem.
This preparatory phase has borne fruit. Recent high-decibel interventions demonstrate not only the Commission’s readiness but also its resolve to tackle some of the most contentious issues in global competition law.
Taking on Big Tech
The CCI’s bold stance against Big Tech has been a cornerstone of its resurgence. The Commission has signalled its intention to confront anti-competitive practices in the digital ecosystem with precision and authority.
Last month’s order against Meta marked a turning point. The CCI found Meta’s conduct in leveraging its dominant position in social media to favour its other products as stifling competition.
This order sent ripples through the tech community, emphasizing that dominance in one market cannot be a launchpad for unfair advantage in another.
Building on this momentum, CCI opened probe against Google to investigate its alleged abusing conduct in restricting real-money gaming apps on the Play Store. By targeting restrictive practices that hinder app developers, CCI has joined global regulators in curbing Google’s monopolistic tendencies. These decisions demonstrate that India is not just keeping pace with international competition authorities but, in many respects, setting its own benchmark.
AI and Competition
Another feather in CCI’s cap is the launch of its Market Study on Artificial Intelligence and Competition. AI, often described as the next frontier of technological advancement, is already reshaping industries and consumer behaviour.
Yet, its transformative potential raises critical questions about market concentration, barriers to entry, and algorithmic bias.
The study places CCI at the forefront of global efforts to regulate AI-driven markets. By proactively addressing the competition implications of AI, the Commission is preparing India’s regulatory framework for challenges that lie ahead.
Under Chairperson Ravneet Kaur’s guidance, CCI has balanced its twin mandates of enforcement and advocacy with remarkable dexterity.
Enforcement actions against Big Tech have been coupled with advocacy efforts to educate stakeholders about the benefits of compliance. Additionally, the Commission’s internal capacity-building efforts reflect Kaur’s emphasis on preparedness and adaptability.
Challenges Ahead
The road ahead is not without hurdles. The digital economy presents unique challenges that require constant innovation in regulatory approaches. The sheer scale and complexity of Big Tech operations, combined with the pace of technological change, necessitate agility and foresight in decision-making.
With an expanded mandate under the amended Act, the Commission will need to invest in technology, talent, and infrastructure to ensure that it can effectively discharge its responsibilities.
Nonetheless, the CCI’s recent actions inspire confidence. By prioritizing high-impact cases and addressing systemic issues, the Commission has signalled its intent to create a level playing field for all market participants.