The transfer follows a suggestion by the parliamentary standing committee on finance on performing towards anti-competitive behaviour in digital markets to forestall the formation of monopolies. The panel had additionally urged digital competitors laws to make sure a good, clear and contestable digital ecosystem within the nation and identification of systemically vital digital intermediaries (SIDIs).

The report recognized 10 key competitors points, together with deep discounting, steering, unique tie-ups, search and rank preferencing, promoting insurance policies and third-party purposes, whereas proposing acceptable measures for SIDIs.

In accordance with an order issued by the company affairs ministry, the 16-member committee might be headed by the secretary and embrace the chairperson of the Competitors Fee of India (CCI) together with different trade contributors. The committee may even have invitees from different ministries, NITI Aayog, Division of Commerce and Division of Financial Affairs, amongst others.

In accordance with the ministry doc, the phrases of reference of the committee will embrace “whether or not present provisions within the Competitors Act, 2002 and the principles & laws framed thereunder are adequate to take care of challenges which have emerged from the digital economic system”. It can additionally “look at the necessity for an ex-ante regulatory mechanism for digital markets by means of a separate laws”.

Ex-ante regulatory mechanism is the place the regulator has powers to take preventive motion to safeguard markets from potential anti-competitive practices. At the moment, the powers of the CCI are designed to be ex-post in nature, that means the motion is initiated after a possible violation.The committee has additionally been mandated to review systematically vital digital intermediaries which have the potential to hurt digital markets. It can additionally examine one of the best practices around the globe with respect to competitors legal guidelines to control digital firms.