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GOVT. STEPS TAKEN UP US’s Federal Trade Commission: US Department of Justice and 16 states sued Apple alleging it monopolised and abused the smartphone market. The case against Apple follows a growing list of lawsuits against Google, Meta and Amazon for abusing market power. The modus operandi is familiar – blocking, suppressing, excluding, diminishing functionality of rival products and limiting third-party wallets. EU’s Initiatives: In a slew of measures to ensure “contestable and fair markets in the digital sector” in line with the provisions of the Digital Markets Act (DMA), 2022 the European Commission in March,2024 initiated ‘non-compliance investigations’ against so called Big Techs (Apple, Meta and Google’s parent Alphabet). It will also investigate Amazon’s ranking practices in its marketplace. India’s Stand: Competition Act, 2002: In India, antitrust issues are governed by the Competition Act, 2002 and the CCI checks upon monopolistic practices. In 2022, the CCI imposed a penalty of Rs 1,337.76 crore on Google for abusing its dominant position in multiple markets for 'anti-competitive practices'. Competition Amendment Bill, 2022: The government has proposed amendments to the competition law in the Competition Amendment Bill, 2022. The Bill received Presidential Assent in April 2023. The CCI shall frame regulations to prescribe the requirements for assessing whether an enterprise has substantial business operations in India. It will strengthen the Commission’s review mechanism, particularly in the digital and infrastructure space, a majority of which were not reported earlier, as the asset or turnover values did not meet the jurisdictional thresholds. |
CHALLENGES WITH BIG TECH FIRMS
WAY FORWARD
The Standing Committee on Finance delivered its analysis on 'Anti-Competitive Behaviors by Major Technology Firms' in December 2022. Its key insights and proposals include:
PRACTICE QUESTION
Q: Regarding India's approach to regulating Big Tech's influence, identify challenges, and recommend strategies for fostering a fair and competitive digital marketplace in India. (10M,150W)