GETTING IN TUNE WITH THE TIMES

The new competition law catches up with the realities of a digital world, but now faces a litmus test in the Google Play billing case

- RUCHIKA CHITRAVANSHI

Last week, Google Play billing policy came under the scanner of the Competition Commission of India (CCI) for allegedly imposing unfair service fees on app developers. This, perhaps, is one of the first investigations ordered by the antitrust watchdog since the Competition Amendment Act 2023 was notified on February 20, with one of its highlights being the incentives to a cartel under investigation to tell on other cartels.

But we will come to that in a moment.

India's competition law was originally designed for brickand-mortar companies. It was not in tune with the digital revolution that swept across the business landscape during the last decade or so. But the law made do by what some might call the Jugaad way to deal with the gig and the digital economy. Now, though, the law seems to have caught up with the times.

The litmus test of how well it has caught up, say experts, is how the provisions of the amended Act are applied in the matter of Google Play Store. Whether the search and software giant opts for the settlement and commitment one of the new facets scheme of the law in the days to come would be closely watched by competition law practitioners and digital companies alike.

"The proof of the pudding is in the eating. How the CCI implements the new provisions and ensures that the legislative intent is not compromised would be of utmost importance. The CCI now has to build trust among stakeholders," says an industry expert.

Turning point

From introducing the leniency plus and settlement and commitment mechanisms for companies flouting the rules, the competition law for the first time is also including a deal-value threshold, instead of just asset value, for approving mergers and acquisitions. Add to this the latest Digital Competition Bill and the legal framework for competition law is now poised for a historic turning point.