India is refining its proposed Digital Competition Bill (DCB), signalling a more targeted approach to regulating the country’s digital economy.
Rather than imposing broad obligations across the technology ecosystem, the government is reviewing the framework to ensure that enhanced regulatory oversight applies primarily to large digital platforms with significant market influence, while avoiding unintended compliance burdens for startups and emerging businesses.
The move comes as the Ministry of Corporate Affairs (MCA) undertakes a market study to reassess the criteria used to identify Systematically Significant Digital Enterprises (SSDEs). The review is expected to help policymakers establish clearer thresholds that distinguish dominant digital players from companies that are still scaling their operations.
The proposed legislation is designed to address a growing challenge in digital markets—where a handful of platforms can shape competition through their scale, user base and control over digital ecosystems. Unlike the existing Competition Act, which typically intervenes after anti-competitive behaviour has occurred, the Digital Competition Bill seeks to introduce preventive measures that discourage unfair market practices before they impact competition.
Since the draft Bill was introduced, industry stakeholders have raised concerns that its original thresholds could have extended regulatory obligations beyond large technology firms, potentially affecting high-growth Indian startups. The government’s latest review indicates an effort to create a more proportionate framework that protects competition without slowing innovation.
The ongoing study will evaluate both quantitative and qualitative parameters, including financial thresholds, market presence and user reach, to determine which businesses should be classified as systemically significant. This approach is expected to provide greater regulatory certainty while ensuring that oversight remains focused on enterprises capable of influencing market dynamics at scale.
The development reflects India’s broader evolution in digital governance. Over the past few years, policymakers have introduced reforms across areas such as data protection, digital public infrastructure, cybersecurity and platform accountability. Strengthening competition policy has become another important component of this wider governance agenda, particularly as digital platforms continue to play a larger role in commerce, payments, advertising and consumer services.
Industry experts believe the revised framework could help strike a balance between encouraging innovation and maintaining fair competition. By narrowing the scope of regulation to dominant digital enterprises, the government aims to reduce compliance challenges for startups while ensuring that businesses with significant market power operate within clearly defined competitive boundaries.
The market study, currently underway, is expected to conclude later this year and will inform the next version of the proposed legislation. The findings are likely to shape how India approaches digital market regulation in the years ahead, with an emphasis on creating a policy framework that supports innovation, protects competition and strengthens confidence in the country’s rapidly expanding digital economy. As India’s digital ecosystem continues to mature, the revised Digital Competition Bill is expected to become a key pillar of the country’s regulatory architecture—one that seeks to balance economic growth with market fairness in an increasingly platform-driven world.
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