The Digital Personal Data Protection (DPDP) Act 2023 has significant implications for antitrust issues in digital markets. A consensus has emerged among competition regulators across jurisdictions that in markets underpinned by data-driven business models, antitrust concerns intersect with data protection regulatory issues. With the recent enactment of the law, the landscape in India is now ripe to ensure that the two regulatory tools of data protection and competition work in tandem. The paper provides an overview of why a new approach to antitrust law is required in the realm of data-driven digital platforms, and delves into the evolving antitrust cases in India with respect to digital platforms to lay out the jurisprudence on data-related anti-competitive practices. The main objective of this paper is to map the Digital Personal Data Protection Act in the context of India’s jurisprudence to theoretically illustrate how regulation of personal data could impact antitrust enforcement. Finally, the paper outlines how the CCI needs to assess digital antitrust cases and how the personal data legislation will need to evolve to achieve the twin goals of data protection and fair competition.
The defining feature of market economies in the 21st century is the global dominance of technology firms and digital platforms. The market value of Google, Apple, and Amazon is more than a trillion dollars each – sizeable enough to warrant the attention of consumers, competitors and regulators. These firms have brought numerous benefits to consumers and businesses alike by enabling instant communication, selling products and merchandise online, and providing useful information at the click of a button. However, they have also raised major antitrust concerns through distorting markets, foreclosing competition through skilful acquisition of start-ups, and imposing hidden data (non-price) costs on consumers (Khan, 2017).
These antitrust abuses primarily stem from the role data plays in these companies’ business models. The platforms in digital markets are stickier than firms in a non-digital sector for a number of reasons, a phenomenon exacerbated by the role of data (Jenny, 2021).
This paper was also published in the peer-reviewed journal, Indian Public Policy Review.
