2 weeks Ago
The Indian government is likely to delay the introduction of its proposed Digital Competition Law, as it seeks to navigate ongoing trade negotiations with the United States, according to people familiar with the matter. Sources told CNBC-TV18 that the legislation, which has been in the works for over a year, is unlikely to be tabled in the near term, with efforts currently focused on finalising an early-stage trade agreement with Washington. The delay follows strong objections from US government officials and industry bodies, who have reportedly raised concerns about the draft legislation, viewing it as a potential non-tariff barrier that could impact American technology companies operating in India.
India’s Ministry of Corporate Affairs had earlier collected stakeholder inputs on the proposed law, which aims to regulate large digital platforms and address anti-competitive practices in the online space. The bill is seen as a potential shift in the regulatory landscape for digital markets in India, modelled in part on similar frameworks being considered in the European Union. However, officials now appear cautious about advancing the legislation while trade talks with the US are ongoing.
Minister of State for Corporate Affairs had previously said that the government is not in a rush to introduce the bill, stating that due process is being followed and that the focus remains on building consensus. The proposal has been closely watched by both Indian and international technology firms. While some domestic stakeholders support stronger digital market regulation, others have warned of unintended consequences for innovation and investment.
With no firm timeline in place, the future of the Digital Competition Law now appears linked to broader geopolitical and trade considerations, adding another layer of complexity to an already sensitive policy issue. Also read: Parliamentary Panel to question delay in Digital Competition Bill amid India-US trade talks.
