Description: This report analyses the potential impact of the ex-ante regulation proposed in the Draft Digital Competition Bill, 2024 (DDCB) on consumers. It presents findings from a survey of 2,028 consumers from 28 Indian states we conducted in February and March 2024.
Attribution: Meghna Bal, Dr. Vikash Gautam, Tamanna Sharma, and Mohit Chawdhry, A Survey-Based Assessment of the Draft Digital Competition Bill’s Impact on Consumer Welfare in Markets. July 2024, Esya Centre.
Description: This paper seeks to understand the extent to which micro, small and medium-sized enterprises (MSMEs) rely on large digital platforms to advertise to and attract customers, and the impact on MSMEs when regulation or legislation restricts them from doing do so. The triggers for this research paper are developments in some countries to enact ex ante antitrust regulations that seek to limit the ability of digital platforms to provide effective advertising and other services. These rules ignore the well-recognised benefits that MSMEs derive from accessing them.
Attribution: Meghna Bal and Dr Vikash Gautam. A Survey-Based Assessment of the Impact of the Draft Digital Competition Bill, 2024 on MSMEs in India. March 2024, Esya Centre.
The Competition Commission of India (CCI) opened public consultations on the Draft (Determination of Turnover and Income) Regulations, 2023 (“Draft Regulations”) on December 22, 2023. The Esya Centre is pleased to be afforded an opportunity to respond to the Draft Regulations. The Draft Regulations clarify how turnover and income are to be determined for calculating penalties for anti-competitive agreements (s.3) and abuse of dominant position (s.4) under s. 27 of the Competition Act, 2002, or contraventions of the Act under s. 48. The response is divided into two parts, with Part I providing a general overview and Part II delving deeper into each submission.
Attribution: Response to the Public Consultation on “The Competition Commission of India (Determination of Turnover and Income) Regulations, 2023”. Issue No. 113, January 2024, Esya Centre.
Description: The Competition Commission of India (CCI) opened public consultations on two new draft regulations, namely the Competition Commission of India (Commitment) and the Competition Commission of India (Settlement) Regulations 2023 (hereinafter the Draft S&C Regulations), on August 28, 2023. The Esya Centre1 lauds the CCI for publicly consulting on draft versions of these two important regulations and is pleased to be afforded an opportunity to respond to both. Our response is divided into two parts. Part I provides a preliminary overview of our response, with Part II delving deeper into specific aspects of the regulations, such as timelines and confidentiality.
Attribution: Response to the Public Consultation on the “Competition Commission of India (Commitment) Regulations and the Competition Commission Of India (Settlement) Regulations 2023”. Issue No. 109, September 2023, Esya Centre.
Description: This report is first in a series on Indian Perspectives on Competition Regulation in Digital Markets co-published by the Observer Research Foundation (ORF) and the Esya Centre. It is a synthesis of insights that were shared during a discussion, convened by the Esya Centre and ORF, among stakeholders belonging to the public sector, industry, academia, and consumer interest organisations as a first step towards formulating a position on digital competition regulation for India.
Attribution: Meghna Bal, et al., Eds., Devising an Emerging Market Perspective for Competition Regulation in the Digital Age, November 2022, Observer Research Foundation and Esya Centre.
Description: With Esya Centre as a Knowledge Partner, the Competition Commission of India (CCI) conducted a Market Study on Film Distribution Chain in India.
The purpose of the study was two-fold. One, to understand the state of competition in the film industry in view of the evolving industry dynamics related to digitization. And two, to identify issues related to competition that can be resolved or mitigated through self-corrective measures to limit the need for Commission’s interventions, with a view to encourage the production and dissemination of content and overall wellbeing of the stakeholders in the ecosystem and address bargaining power imbalances across the value-chain, if any.
The study employed a combination of desk research and primary research that included focus-group discussions, one-on-one meetings, post-discussion surveys, and written submissions of stakeholders. The study highlights some of the key competition issues in the film distribution chain in India, as identified by stakeholders. In doing so, the study discusses the role of various associations in the chain, be it at the production, distribution, or exhibition level; the superior bargaining power of some entities and the resultant imbalances; the bottlenecks that exist at various levels; unequal distribution of risks; revenue-sharing arrangements; new-age technologies in cinema; tying and bundling arrangements at the exhibition level, etc.
The study provided key insights into conceptual and analytical questions such as the relevant market, assessment of the bargaining power of industry constituents, and objective commercial justifications for certain conduct. Relying on the findings from this study and under its advocacy mandate, the Commission has recommended the film industry to devise certain self-regulatory measures for various categories of stakeholders.
Description: The report examines how technological advancements have transformed competition in digital markets, focusing on the shift from price to non-price factors like innovation, quality, privacy, and security as key determinants of consumer choice. It highlights the challenges competition authorities face in measuring and evaluating these qualitative factors due to their subjective nature and potential jurisdictional overlaps with sectoral regulators. The report suggests solutions, including an integrated institutional framework and consumer surveys, to better assess non-price competition factors and ensure effective regulation in the rapidly evolving digital economy.
Attribution: Mohit Chawdhry. A Framework to Evaluate Non-Price Factors in Competition Regulation. March 2022, Esya Centre.
Description: The report highlights the challenges and peculiarities of regulating digital platforms in multi-sided markets, emphasizing the need for competition regulators to adapt traditional antitrust tools for digital economies. It discusses the inadequacy of current market determination methods in capturing the complex dynamics of digital platforms, suggests incorporating platform typology and indirect network effects into analyses, and critiques the inconsistent use of qualitative factors in regulatory decisions. The report concludes with recommendations for legislative amendments and the establishment of guiding principles to better address the multi-faceted nature of digital platforms, urging objective, evidence-based approaches for determining market substitutability.
Attribution: Chawdhry, Mohit. Determining the Relevant Market for Digital Multi-Sided Platforms. Issue No. 013, December 2021, Esya Centre.
Description: The report emphasizes the importance of fostering innovation and maintaining competition in digital markets, similar to traditional markets. It highlights the challenges and peculiarities of digital markets, including scalability and influence on socio-political discourse, prompting global regulatory efforts. It critiques preemptive regulation and advocates for principles balancing oversight with innovation incentives, emphasizing the need for a holistic approach to competition, protection of novel business practices, and safeguarding innovation incentives.
Attribution: Bal, Meghna. First Principles for Competition Regulation in the Digital Economy. Issue No. 012, October 2021. Esya Centre
Description: This report explores the impact of over-the-top (OTT) services on various sectors, emphasizing the advantages for consumers and businesses in going digital. It highlights the disruptive growth of internet-based services, especially in India's e-commerce sector, prompting calls for regulatory intervention to ensure a level playing field between digital and traditional businesses. The report argues against applying a legacy regulatory framework to digital services, proposing a two-pronged strategy of deregulation and institutional strengthening to foster fair competition and innovation.
Attribution: Chawdhry, Mohit. Levelling the Playing Field between Traditional and Digital Businesses. Report Issue 009, June 2021, Esya Centre.
