In a letter to Finance and Corporate Affairs Minister Nirmala Sitharaman, a group of Indian startups and ecosystem representatives urged the Ministry of Corporate Affairs (MCA) to conduct the upcoming market study on digital competition in a transparent, inclusive, and independent manner.
The signatories include Matrimony.com’s Murugavel Janakiraman, People Group’s Anupam Mittal, TrulyMadly’s Snehil Khanor and Amit Gupta, STAGE’s Vinay Singhal, QuackQuack’s Ravi Mittal, and the Alliance of Digital India Foundation (ADIF).
The letter follows the government’s decision to pause the Digital Competition Bill, 2024 (DCB) and commission a market study before revisiting the case for an ex-ante framework to regulate digital gatekeepers. The startups welcomed the move as an opportunity for deeper consultation and evidence-based policymaking. However, they warned that the study’s credibility will depend entirely on how it is structured, who is allowed to participate, and how bidders’ independence is assessed.
The Concerns Raised
The founders argued that the need for an ex-ante framework remains urgent. They pointed to anti-competitive practices by global platforms such as Google and Apple, including charging commissions of up to 30% on app stores and arbitrarily deplatforming Indian apps. These practices, they said, restrict innovation and prevent startups from competing fairly.
Moreover, they expressed concern that the policy debate in India has increasingly been shaped by reports opposing ex-ante rules, many of which are funded by Big Tech. According to the letter, these reports rely on contestable methodologies and present one-sided conclusions. Although such perspectives form part of the debate, the startups argued that they should not dominate it. To avoid this imbalance, they said, the upcoming study must explicitly consider the case for ex-ante regulation and reflect the realities of Indian startups.
What the Startups Want
The letter lays out specific recommendations for the Terms of Reference (ToR) and the Request for Proposal (RFP) that will govern the study.
First, the ToR must clearly define the objectives of the study and include an explicit consideration of arguments in favour of ex-ante regulation. Without this, the study could easily tilt towards the interests of global gatekeepers.
Second, the study must rely on a diverse pool of expertise. The founders urged MCA to go beyond large consulting firms and include credible voices from academia, civil society, and think tanks, both domestic and global. They emphasised that independence, academic standing, and professional credibility should guide selection.
Third, the RFP should not exclude smaller institutions with domain expertise. The startups noted that the CCI’s earlier RFP for a market study on artificial intelligence required applicants to have a turnover of at least Rs. 50 crore for three consecutive years. That condition, they argued,…
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