The Bill is not yet law. But the direction is clear, industry consultation is complete, and the companies most likely to be affected are identifiable today. For any TMT company operating in India's digital economy, whether as a potential designee, a business customer of a potential designee, or a competitor, understanding the proposed framework is no longer optional.
Why India Needs a Digital Competition Law
The existing Competition Act, 2002 has been used against major tech platforms, Google has been the most prominent target, receiving CCI orders in the Android ecosystem and Google Play Store matters. But ex-post investigations under the Competition Act take years. Remedies often arrive after competitive harm is irreversible.
The Competition (Amendment) Act, 2023 raised the penalty ceiling to 10% of global turnover and introduced deal-value thresholds for merger notifications, meaningful improvements. But they remain ex-post tools. The Digital Competition Bill proposes an ex-ante model: designate significant platforms in advance and impose behavioural obligations proactively, before harm occurs.
The Committee on Digital Competition Law (CDCL), constituted by the Ministry of Corporate Affairs, released its report in March 2024 after extensive stakeholder consultation. The committee recommended a dedicated Digital Competition Act. The resulting Digital Competition Bill is in inter-ministerial consultation as of mid-2026.
The SSDE Framework: Who Is Covered
The Bill's central concept is the Systemically Significant Digital Enterprise (SSDE). Designation is based on two tests that must both be satisfied: a financial threshold and a Core Digital Services (CDS) test.
Must provide one or more of:
- Online search engines
- Social networking services
- Video sharing platforms
- Interpersonal communications
- Operating systems / web browsers
- Cloud computing services
- Online advertising services
- Online intermediation (marketplaces, app stores)
The combination of financial thresholds and CDS categories means the initial SSDEs will be a small number of large global platforms: Alphabet/Google (Search, Android, Chrome, YouTube, Google Ads), Meta (Facebook, Instagram, WhatsApp), Amazon (Marketplace, AWS), Apple (App Store, iOS), and Microsoft (Azure, Teams, Windows). Indian entities with rapidly growing digital businesses, Jio Platforms, Reliance Retail, Zomato, Swiggy, may approach SSDE thresholds as they scale in specific CDS categories.
Key Obligations on SSDEs
Designated SSDEs face a set of per se prohibitions (conduct that is simply not permitted) without the need for the CCI to prove competitive harm in each instance:
Anti-steering and self-preferencing
An SSDE cannot unfairly favour its own products or services over third-party alternatives on its platforms. Google's search results displaying Google Shopping before independent price comparison sites is the textbook example. Under the Bill, this would be a per se violation rather than a matter requiring lengthy competitive analysis.
Data leveraging across services
An SSDE cannot use data collected in one Core Digital Service to gain competitive advantage in a different market. Cross-platform data pooling, using messaging app data to power advertising on a social network, would be restricted unless users provide informed consent specifically for that purpose.
Tying and bundling
Mandatory bundling of services, requiring users of an operating system to use a specified browser or app store, with technical restrictions preventing the installation of alternatives, would be prohibited. This is directly aligned with the EU Digital Markets Act's enforcement actions against Apple and Google.
Interoperability obligations
SSDEs providing interpersonal communications services may be required to provide technical interoperability with third-party services. This mirrors the EU DMA's Article 7 requirement, which mandates that large messaging platforms allow users on competing services to exchange messages cross-platform.
Third-party data access
SSDE-operated marketplaces may be required to provide sellers with access to their own aggregated performance data, addressing the asymmetry where platform operators have comprehensive data visibility over marketplace participants who lack access to market-wide intelligence.
Fines: Up to 10% of global turnover for designated SSDEs in violation, and potentially higher in cases of repeat or systemic violations. Given global revenues of companies like Alphabet or Meta, 10% of global turnover is a penalty in the hundreds of billions of dollars, a number designed to be genuinely deterrent.
How It Compares to the EU Digital Markets Act
| Dimension | EU Digital Markets Act | India's Digital Competition Bill (proposed) |
|---|---|---|
| Designation model | Named "gatekeeper" companies designated by the Commission | Threshold-based SSDE designation; CCI assesses qualifying entities |
| Enforcement authority | European Commission (DG COMP) | Competition Commission of India (CCI) |
| Maximum fine | 10% of global turnover; 20% for recidivism | 10% of global turnover (draft; repeat violations higher) |
| Interoperability | Messaging interoperability required (Article 7) | Proposed for interpersonal communications CDS |
| Status | In force from March 2024; gatekeepers designated Sept 2023 | In inter-ministerial consultation; not yet tabled in Parliament |
India's competition regulator has already proven it will act against global tech platforms. The Digital Competition Bill would give the CCI sharper, faster tools, and companies have less time than they think to prepare.
Timeline: Where the Bill Stands
February 2023: Ministry of Corporate Affairs constitutes the Committee on Digital Competition Law (CDCL)
March 2024: CDCL publishes its report recommending a dedicated Digital Competition Act; draft Bill language circulated for comment
2024–2025: Industry stakeholder consultations; inter-ministerial review by MCA, MeitY, DoT, and the Ministry of Finance
Mid-2026 (current): Bill in inter-ministerial consultation; parliamentary introduction not yet scheduled
2026–27 parliamentary session: Expected window for introduction; passage and commencement likely 12-18 months after introduction
Five Actions for TMT Companies Now
Assess your SSDE exposure
Even if you are not a potential SSDE, you may be significantly impacted by SSDE designees changing their practices. App store policy changes affect every mobile developer. Cloud pricing and contractual changes affect every enterprise cloud customer. Map your dependencies on likely-designated platforms.
If you may qualify as an SSDE, run a gap analysis now
For each Core Digital Service you provide, assess which proposed obligations would require changes to product design, data architecture, or commercial terms. Self-preferencing, data-use restrictions, and interoperability obligations typically require the most significant engineering changes.
Engage in the consultation process
MCA's formal consultation creates an opportunity to shape technical provisions. This requires structured industry positions, detailed written submissions, and coordinated engagement with CCI and MCA officials. The time for effective engagement is before the Bill is introduced in Parliament.
Use EU DMA enforcement as a preview
The Commission's enforcement against designated gatekeepers in 2025-26, particularly on app stores, search, and messaging interoperability, provides a detailed operational preview. DMA compliance programmes being built by global platforms can serve as templates for Indian compliance design.
Factor the Bill into M&A analysis
SSDE designation may create additional merger notification thresholds and heightened scrutiny of acquisitions by designated entities. Any significant M&A involving India's digital economy, particularly acquisitions of potential competitive threats by dominant platforms, should account for Digital Competition Bill risk in deal structuring and regulatory strategy.
The Digital Competition Bill represents a structural shift in how India regulates large digital platforms, from reaction to prevention. The CCI has already demonstrated its willingness to take on global tech companies. With the Bill, it will have sharper tools, faster timelines, and penalties calibrated to global revenues. The companies that prepare now will shape both the legislation and their compliance posture. Those that wait will find both decisions made for them.