INVC NEWS
New Delhi : The government is taking steps to ensure equal business opportunities for small digital entrepreneurs by introducing a digital competition law. The proposed Digital Competition Act aims to prevent big tech companies from violating competition rules. On Tuesday, a discussion was held between the Ministry of Finance and Corporate Affairs, represented by Nirmala Sitharaman, and the Ministry of State for Electronics and IT, represented by Rajiv Chandrasekhar, to finalize the act.
During the discussion, it was decided that the Ministry of Corporate Affairs would address competition issues related to digital marketing, while the Ministry of Electronics and IT would handle technical matters. This division of responsibility was established prior to the enforcement of the digital competition law to avoid confusion. A committee was formed based on the recommendations, and it will play a crucial role in monitoring digital platforms through the implementation of the Digital Competition Act.
Under this act, digital platforms will be closely monitored, and big companies will be prohibited from using data to exclude small companies from competition. Furthermore, penalties are being considered for big companies that violate the rules. The practice of offering significant discounts on digital platforms, which negatively impacts small businesses, will also be addressed.
