Introduction

India’s proposed Digital Competition Bill (DCB)—published with the Report of the Committee on Digital Competition Law (CDCL) under the Ministry of Corporate Affairs (MCA)—seeks an ex-ante regime to pre-empt anti-competitive conduct by Systemically Significant Digital Enterprises (SSDEs) that provide Core Digital Services (CDS) like search, social, app stores, OS, browsers, cloud, online intermediation and ads. It sets quantitative thresholds (revenue/GMV/market cap + users), empowers the Competition Commission of India (CCI) to designate SSDEs/ADEs and impose conduct rules on self-preferencing, tying/bundling, data use, defaults, app distribution, data portability, etc. The draft’s formal text also details investigations, orders, penalties, settlements/commitments and interaction with the Competition Act, 2002. In 2025, policy signals indicate a pause or rethink on some ex-ante elements (with references to dropping or phasing), but the DCB remains the clearest blueprint of what an Indian digital-markets regime would look like.

Table of Contents

1. Background & policy context

2. What the Draft Bill actually says (with quotes)

3. Who may be covered: SSDE/ADE, thresholds & CDS

4. The obligations (ex-ante conduct rules)

5. Investigations, orders, settlements/commitments & penalties

6. Relationship with the Competition Act & the CCI’s toolbox

7. What changed in 2025? Status check and likely direction

8. How this compares with EU/UK regimes

9. Implications for platforms, startups, investors & counsel

10. Practical compliance prep checklist

11. FAQs (for founders, counsels & policy teams)

12. References

1) Background & Policy Context

• Following the 53rd Report of the Parliamentary Standing Committee on Finance on “Anti-Competitive Practices by Big Tech”, the MCA constituted the CDCL (Feb 2023) to evaluate the need for a separate digital competition law and to draft a bill. On March 12, 2024, MCA invited public comments on the CDCL Report and the Draft Digital Competition Bill. 

• The CDCL Report (Feb 27, 2024) concludes that the ex-post framework under the Competition Act, 2002 needs supplementation for fast-moving digital markets and recommends an ex-ante regime to avoid “irreversible tipping.”

• The Report appends the Draft Digital Competition Bill, 2024 (“DCB”) text as Annexure IV, which is the operative legislative blueprint referenced below.

2) What the Draft Bill Actually Says (With Quotes)

Preamble & Purpose
The very first page frames the Act as one to identify SSDEs/ADEs, regulate their practices in Core Digital Services, “keeping in view the principles of contestability, fairness and transparency, with an objective to foster innovation, promote competition, protect the interest of users of such services in India.” (Bill text) 

Short title & extra-territorial reach

“This Act may be called the Digital Competition Act, [2024]… It extends to the whole of India, and …extends to acts outside India having an effect on obligations and conduct requirements under this Act.” (Section 1) 

Definitions (selected)
The bill defines Core Digital Service, Systemically Significant Digital Enterprise, Associate Digital Enterprise, and adopts several meanings from the Competition Act, 2002 and Companies Act, 2013. (Section 2) 

3) Who May Be Covered: SSDE/ADE, Thresholds & CDS

3.1 Systemically Significant Digital Enterprises (SSDEs) & Thresholds

The Bill provides quantitative triggers for designation—revenue/GMV/market-cap tests AND user-base tests over the preceding years. Illustratively, the text (as published) references:

• Market cap ≥ USD 75 billion (or equivalent fair value), and

• Users: at least 1 crore end-users or 10,000 business users per CDS for three preceding financial years. (Chapter II excerpts)

It also allows designation even if thresholds are not met based on qualitative assessment, and provides for self-notification by enterprises meeting thresholds, within 90 days, for the CCI to designate. (Report & Bill) 

3.2 Associate Digital Enterprises (ADEs) & Group Coverage

Where the CDS is provided within a Group, the CCI can designate ADEs alongside the SSDE so that the relevant corporate group nodes tied to the CDS fall under obligations. (Report, Chapter IV)

3.3 Core Digital Services (Schedule I)

Schedule I lists the regulated CDS categories. Quote from the bill:

“A ‘Core Digital Service’ includes any of the following: (a) online search engines; (b) online social networking services; (c) video-sharing platform services; (d) interpersonal communications services; (e) operating systems; (f) web browsers; (g) cloud services; (h) advertising services; and (i) online intermediation services.” (Schedule I) 

The Central Government, in consultation with CCI, may amend Schedule I (add/alter/delete services) by notification. (Section on Schedules) 

4) The Obligations (Ex-Ante Conduct Rules)

The Bill sets out principles-based conduct requirements for designated SSDEs/ADEs (with CCI to specify details by regulation). Key duties include:

1. Data Use & Non-Public Business User Data

“An SSDE shall not… use or rely on non-public data of business users operating on its Core Digital Service to compete with such business users.” (Data non-misuse rule) 

2. Cross-use of Personal Data & Consent

SSDEs shall not “intermix or cross use the personal data of end users or business users collected from different services… without consent.” (Consent anchored to DPDP Act for end-users) 

3. Data Portability

SSDEs must allow business and end users to easily port their data, “in a format and manner as may be specified.” 

4. Third-Party Apps & Default Settings (Choice Architecture)

SSDEs shall not restrict the download, install, operate or use of third-party applications on their CDS, and must allow users to choose/set/change defaults. 

5. Anti-steering

SSDEs shall not restrict business users from promoting offers, communicating with or directing end-users to their own or third-party services (subject to limited, “integral” exceptions to be specified).

6. Tying & Bundling

SSDEs shall not require or incentivise the use of their other products/services (or those of related/arranged third parties) alongside the identified CDS, unless integral to the CDS.

The CDCL Report makes clear that this is intended to be an agile, principle-based ex-ante set of obligations where specifics are fleshed out via CCI regulations after consultation.

5) Investigations, Orders, Settlements/Commitments & Penalties

Inquiries & Orders
The Bill empowers the CCI to initiate inquiries and, after investigation, to direct discontinuation, modify conduct, and impose penalties where contraventions are found. (Sections 16–17 excerpts)

Settlement & Commitments
Uniquely (mirroring global practice), the Bill includes settlement (post-DG report, pre-final order) and commitments (early-stage) pathways—allowing case resolution via behavioural undertakings subject to CCI oversight and revocation if disclosures are untrue. (Sections 18–20 excerpts)

Powers & Procedure
The Bill applies, mutatis mutandis, several provisions of the Competition Act to CCI’s powers under DCB and allows the CCI to call for documents/information, conduct studies, and frame regulations—including for the Section 7 obligations. (Powers & Regs excerpts)

Penalties & Recovery
The text cross-references recovery mechanisms akin to those under the Income-tax Act for penalty recovery—signalling a serious approach to enforceability. (Penalty recovery cross-reference)

6) Relationship With the Competition Act & the CCI’s Toolbox

• The DCB supplements (not replaces) the Competition Act, 2002. The Bill explicitly adopts definitions and applies Competition Act provisions to CCI’s DCB work where relevant—streamlining institutions and procedures. (Bill text)

• Inter-regulatory coordination: The Bill provides for references between statutory authorities and CCI, with sixty-day opinion timelines—important where digital sectors overlap with telecom, IT, payments, media, etc. (References sections)

• The CDCL Report highlights the need to boost CCI capacity in digital markets (economists, technologists), and to ensure phased, proportionate implementation. (Report) 

• In public remarks, CCI’s Chairperson Ravneet Kaur has emphasised evidence-based, proportionate enforcement in digital markets—a signal for balanced rule-making and case handling.

7) What Changed in 2025? Status Check & Likely Direction

• As of today (Nov 5, 2025, IST), the DCB is not enacted law. Media and policy reporting through Aug–Sep 2025 indicates the government withdrew the 2024 draft and is re-examining ex-ante measures, considering a market study and/or a phased or recalibrated approach (including potential dropping or narrowing of some ex-ante obligations).

• The policy vector appears to be “revise, don’t rush”: tighten thresholds (so fewer firms are captured), ensure innovation/startup concerns are addressed, and sequence implementation as CCI capacity scales. (Press & committee coverage) 

Bottom line: Treat the Draft Bill and CDCL Report as the authoritative blueprint, while tracking MCA and Parliamentary Committee signals on phasing, scope and thresholds in the next iteration.

8) How This Compares With EU/UK Regimes (Quick Lens)

• Like the EU’s Digital Markets Act (DMA), India’s DCB targets large cross-platform effects, self-preferencing, defaults, app distribution, data use and portability through ex-ante rules; EU enforcement in 2025 (e.g., fines on Apple/Meta) underscores the compliance gravity of such regimes. (EU news context)

• The UK’s Digital Markets, Competition and Consumers Act uses a “Strategic Market Status”-style, firm-specific conduct requirement model—similar in spirit to SSDE designation + tailored conduct. (Background comparisons and commentary) 

9) Implications for Platforms, Startups, Investors & Counsel

1. Designation risk (SSDE/ADE): Large firms meeting financial and user thresholds—or otherwise qualifying—could face ongoing conduct obligations and scrutiny across their product stack and relevant ADEs.

2. Product & ecosystem design: Expect governance over default settings, sideloading/third-party app access, anti-steering, tie-ins, and data separation & consent; this affects UX, APIs, contracts, ad tech, storefronts.

3. Data governance: Build data inventories, purpose limitation, cross-service walls, consent plumbing (aligned to DPDP Act for end-users) and data portability tooling. 

4. M&A & deal-process: Heightened attention to killer/creeping acquisitions in digital; early antitrust due diligence, remedy-planning, and post-merger conduct compliance become essential. (Context from CCI public stance on digital M&A vigilance) 

5. Governance & documentation: Internal policies, training, logs, auditable trails for defaults/data/app-access restrictions; board oversight for SSDE compliance.

6. Litigation & regulatory strategy: Prepare for settlement/commitments pathways; align internal risk matrices to likely conduct orders and penalty recovery mechanisms.

10) Practical Compliance Prep Checklist (For Counsels/CS/Policy Teams)

• Map services to CDS (search, social, OS, browser, app store, cloud, ads, intermediation). If multi-product, map group structure to identify potential ADEs.

• Threshold watch: Track revenues/GMV/market-cap + end-users/business-users per CDS for three years; prepare for self-notification within 90 days if thresholds are met.

• Build the conduct-compliance spine:

  • No self-preferencing with non-public business-user data.

  • Consent-based cross-use of data; separate data lakes.

  • Enable third-party apps, side-loading (if applicable), and changeable defaults.

  • Anti-steering: remove restrictions on merchant messaging/links (unless “integral” and specified).

  • Data portability tooling for end-users and business users.

• Playbooks for investigation response, settlement/commitments, and remedy implementation (technical + contractual).

• Board & audit: Institute quarterly reviews; integrate DCB risk into enterprise risk management; ensure cross-functional alignment (legal, product, data, security, growth).

• External posture: Prepare stakeholder impact assessments for proposed CCI regulations during consultations; monitor MCA/Parliament signals on phasing.

11) FAQs

Q1. Is the Digital Competition Bill currently in force?
No. The Draft Bill accompanied the CDCL Report (public consultation March–April 2024). Through 2025, reports indicate the government withdrew the 2024 draft and is reconsidering ex-ante implementation (market study, phased approach). It is not law yet.

Q2. What types of services count as “Core Digital Services”?
Schedule I covers search, social, video-sharing, interpersonal communications, operating systems, web browsers, cloud, advertising, and online intermediation; the Government (with CCI) can amend this list.

Q3. How does an enterprise become an SSDE?
By meeting financial + user thresholds (e.g., USD 75B market cap; ≥1 crore end-users or ≥10k business users per CDS for each of three preceding financial years) or by CCI’s case-by-case designation, followed by formal order. Self-notification to CCI within 90 days is required after thresholds are met.

Q4. What are the headline conduct obligations?
No self-preferencing using non-public business-user data; consent-based cross-service data use; data portability; freedom to install third-party apps and change defaults; anti-steering; limits on tying/bundling unless integral. Details to be set by CCI regulations.

Q5. How will this interact with the Competition Act cases I already track?
The Competition Act remains; DCB adds a parallel, preventive layer for designated firms. The Bill imports Competition Act powers and reference mechanisms to avoid forum gaps.

Q6. Will smaller startups be affected?
The CDCL Report stresses not burdening smaller firms and careful threshold design; policy debates in 2025 discuss narrowing scope and phasing.

Q7. What’s the enforcement stance likely to be?
CCI leadership has publicly emphasised evidence-based, proportionate action in digital markets; any future ex-ante rules are expected to reflect that ethos.

12) References (Primary & Authoritative)

• MCA Press Release inviting public comments; link to CDCL Report PDF (Mar 12, 2024). Press Information Bureau

• Report of the Committee on Digital Competition Law (2024)—full text with recommendations, thresholds, ADE/SSDE concepts, and rationale. PRS Legislative Research

• Draft Digital Competition Bill, 2024—operative legislative text (Annexure IV). MEDIANAMA

• PRS India summary of the Digital Competition Law/Report. PRS Legislative Research

• CCI Chairperson statements on proportionate/evidence-based digital enforcement (2025). The Economic Times

• 2025 policy status (reports on withdrawal/rethink, phased approach