Amid concerns about possible unfair business methods in the growing digital space, Competition Commission Chairman Ashok Kumar Gupta has said a “one-size-fits-all” approach will not work. ”For digital markets and the need for time is a positive assessment of fact-based issues.
The Competition Commission of India (CCI) has been closely monitoring digital markets and also came up with a detailed study of the role of e-commerce, among other initiatives.
Because of their inherent characteristics such as network effects and data-driven compatibility, digital markets tend to be high-density and are often “winning markets”, Gupta chose and recognized them that concerns and the impact of anti-competitive behavior are amplified in this context.
“The strength of network effects and customer lock-in varies from one market and one product to another. A one-size-fits-all approach doesn’t work.
“The need for time is a positive assessment, based on the facts of the case and the market and the technology involved. The law against Indian trust allows much-needed flexibility within a broad framework because the legislative framework is strong enough, “Gupta told PTI in a recent email interview.
Like any other competition authority, he said the challenge for the CCI is to ensure that these dense digital markets are open to new entrants and that there is competition on and between the digital platforms on merit.
This has become more important during the pandemic as the integration of businesses with the digital method is extremely important, he stressed.
Among the studies conducted or recommended by the fair trade watchdog is an ongoing one about unions and gains in the digital market to understand the emerging trends.
According to Gupta, the study will also look at those unions and benefits in the digital space that may have escaped CCI scrutiny as a result of their falling asset / conversion. below the specified thresholds.
Under the Competition Act, contracts outside certain levels must be approved by the CCI.
When asked about his views on digital companies collecting big data and at times, emerging as a kind of monopolies that will affect other competitors, Gupta said the regulator is aware of the digital markets that are rapid growth and the role of Big Data in the gig economy.
Explaining, he noted that, from a competition law perspective, data as a resource is a key element of the digital economy and is an important metric in assessing the market power of companies.
“Data and, in particular, the knowledge extracted from data is a source of great competitive advantage, which can work in favor of large platforms. The concern arises when large digital companies consolidate and take advantage of this data advantage through anti – competitive means, “he noted.
He said inadvertently such companies would not accelerate the data under control in some markets to achieve better power in other markets, or discriminate in accessing data to attempt to exclude a potential competitor could be a cause for concern that requires investigation under the Competition Act, 2002.
“Furthermore, if consumers value privacy, then a large collection of data could be analogous to a reduction in the quality of service provided and / or an unfair situation. is seen in terms of competition law as spying behavior, “he said.