The Standing Committee on Finance presented its Thirty-Seventh Report to Parliament on August 10, 2026, urging the government to finalise the Digital Competition Bill (DCB) and expand its scope to include Virtual Assistants and Cloud Services. The committee recommended a shift to proactive, ex-ante regulation of digital markets and called for an E-commerce Code of Conduct addressing platform neutrality, algorithmic transparency, and fair data access for smaller businesses, according to medianama.com.
The committee’s report emphasized that the current Competition Act’s ex-post framework is inadequate for the fast-paced digital economy, where network effects and data advantages concentrate power among large platforms acting as gatekeepers. It recommended strengthening the Systemically Significant Digital Enterprise (SSDE) framework, increasing resources for the Competition Commission of India (CCI), and enhancing enforcement mechanisms. The government accepted seven of the eight recommendations but rejected the proposal on protecting MSMEs and small businesses.
These recommendations come amid growing concerns about digital market dominance and the need for regulatory frameworks that can keep pace with technological advances. The committee’s call for ex-ante regulation aligns with global trends where regulators seek to prevent anti-competitive practices before they occur. The proposed E-commerce Code of Conduct aims to ensure fair competition by promoting transparency and non-discriminatory access, which could impact major digital platforms operating in India.
The committee’s report forms part of its action-taken review of the CCI and the digital landscape, highlighting the urgency of updating India’s competition laws. The government’s acceptance of most recommendations signals a potential policy shift, with the Digital Competition Bill’s finalisation expected to be a key milestone in India’s digital regulatory framework.