Antitrust focus shifting to economy-wide ramifications of Big Tech practices: CCI official

India’s antitrust regulator is contemplating economy-wide ramifications of client welfare similar to entry to innovation and selection for smaller companies depending on bigger platforms, along with worth, whereas taking a view on anticompetitive practices, stated Payal Malik, adviser, economics division on the Competition Commission of India (CCI).

Malik was talking on the ICRIER Prosus Centre for Internet and Digital Economy’s annual convention right here on Friday.

“(The metrics that are considered include) innovation – whose innovation is it? Is it only the large platforms? Choice – the terms of trade for business users who are dependent on these platforms because there have been cases where the trading partners have been ousted because of the governance rules imposed by Big Tech companies on the same partners who have helped them reap the benefits,” she stated.

“The inclusiveness is now shifting from an antitrust perspective to economy-wide ramifications, businesses in India – be it hotels, restaurants, media, app developers and other startups – because of the dependence on digital platforms,” she added.

In October final yr, the CCI imposed a penalty of Rs 1,337.76 crore on US-based web large Google for abusing its dominant place in a number of markets with its Android cell working system (OS) and prescribed a set of a couple of dozen measures that the corporate needed to adjust to. The firm later appealed in opposition to the order however has not been granted reduction within the matter.

The identical month, on-line journey platforms MakeMyTrip-Goibibo (MMT-Go), and hospitality providers supplier Oyo had been slapped with penalties totalling greater than Rs 392 crore by CCI for “unfair business practices”.

The allegations had been that MMT-Go “imposed a price parity in their agreements with hotel partners.”Under these offers, motels will not be allowed to “sell their rooms on any other platform or on its own online portal at a price below the price at which it is being offered on the two entities’ platforms.”

It was additionally discovered that MakeMyTrip accorded preferential therapy to Oyo on its platform, which precipitated denial of market entry to different firms.

“Antitrust regulation is now increasingly moving to problems associated between business users and these platforms. Words such as self-referencing, leveraging, data collection practices, and deep discounting are increasingly getting into the lexicon of antitrust law,” Malik stated.

Over the previous couple of years, the competitors fee has elevated concentrate on bringing digital firms underneath its protection, each from a mergers and acquisition viewpoint and from a dominant place perspective.

Last yr, former CCI Chairman Ashok Kumar Gupta stated the regulator was within the strategy of establishing a devoted Digital Markets and Data Unit (DMDU).

“In view of the number of cases and complexity in the digital sector and the increasing need for data and technology skills, CCI is in the process of setting up a dedicated Digital Markets and Data Unit. In addition to our staff from the law, economics and finance streams, we plan to staff the unit with new professional profiles such as data scientists, algorithm experts etc,” he had stated.

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