The Alliance of Digital India Foundation (ADIF), a policy think tank focused on digital start-ups, has called for the expedited implementation of proposed Digital Competition Bill, warning that unchecked monopolistic practices by global tech giants threaten the survival of Indian start-ups. 

With the country’s digital economy projected to reach $ 1 trillion by 2028, ADIF insists that proactive regulations are essential to curb anti-competitive behavior and foster a level playing field for over 31,000 technology start-ups in sectors like AI, e-commerce, and cloud computing.

The Digital Competition Bill, introduced in March 2024, seeks to grant the Competition Commission of India (CCI) the pre-emptive authority to regulate self-preferencing, restrictive interoperability, and algorithmic bias — tactics frequently employed by dominant digital platforms to sideline emerging competitors. 

ADIF highlighted how large players restrict access to Near Field Communication (NFC) capabilities for proprietary payment apps, effectively blocking third-party wallets and limiting consumer choice. Such “walled garden” ecosystems hinder market entry for startups while concentrating power in a few hands.

A Move Towards a Fairer Digital Marketplace

ADIF drew comparisons with the EU’s Digital Markets Act (DMA), which has successfully enforced interoperability and competition across Europe. Similar to the DMA, India’s proposed Bill aims to designate Systemically Significant Digital Enterprises (SSDEs) based on revenue, user base, and data control. These SSDEs would be subject to data portability mandates and restrictions on cross-leveraging non-public user data, measures intended to prevent market monopolisation before smaller players are eliminated.

While concerns over compliance costs persist, ADIF argued that a phased rollout and sector-specific thresholds will minimise disruptions. The Bill particularly benefits Indian e-commerce start-ups, as it would prohibit “anti-steering” clauses, which currently limit third-party integrations and force sellers to comply with restrictive platform rules.

A Push for Self-Reliance and Inclusive Growth

Emphasising alignment with India’s Atmanirbhar Bharat vision, ADIF states in a statement that the Bill will enable homegrown businesses to build localized solutions, including vernacular AI tools, without reliance on restrictive foreign platforms. 

ICRIER research cited by ADIF underscored how platform-centric power asymmetries disproportionately harm MSMEs, which lack the bargaining power to negotiate fair terms with global tech giants.

ADIF is pressing for an expedited parliamentary review, with the goal of finalising the Bill by mid-2025. The Foundation asserts that the legislation is not about stifling growth but about ensuring fair competition, allowing Indian start-ups to scale without being crushed by digital monopolies.

“The Digital Competition Bill is crucial for India’s next wave of digital innovation. If enacted swiftly, it will position the country as a global leader in equitable digital governance,” ADIF stated, urging policymakers to set a benchmark for regulatory frameworks worldwide.