Issues pertaining to growth of digital economy: An arduous challenge before CCI

• Published date: 01 November 2020
• Author: Jaswant Singh Saini,Narender Kumar
• Date: 01 November 2020
• DOI: http://doi.org/10.1002/pa.2301

PRACTITIONER PAPER

Issues pertaining to growth of digital economy: An arduous

challenge before CCI

Jaswant Singh Saini

1

|Narender Kumar

1,2

1

Faculty of Law, Maharshi Dayanand

University, Rohtak, India

2

VSLLS, Vivekananda Institute of Professional

Studies (VIPS), GGSIP University, Delhi, India

Correspondence

Narender Kumar, Faculty of Law, Maharshi

Dayanand University, Rohtak, India and VSLLS,

Vivekananda Institute of Professional Studies

(VIPS), GGSIP University, Delhi, India.

Email: narenderarya86@gmail.com

India being the fastest growing economy for e-commerce would likely to generate

revenue of USD 120 billion by 2020. The gross merchandise value, mobile phone

subscriber and growth rate of internet user are expected to reach at USD 17.8 billion,

1,173.75 million and 889 million in 2020 respectively (CCI, 2020). The rapid growth

of e-commerce retail 60 million per month confirms the speed of the digital market in

India. This rapid growth of economy through Digital Market also invites various chal-

lenges including high competition, unfair competition practices, abuse of dominant

position etc. before the Competition Commission of India (CCI). The participation of

the micro small and medium enterprises (MSMEs) in terms of the manufacturing in

online sales in India is a challenge in itself. Further, it is also observed that if the

growth digital economy is need of the hour than its adverse effect on consumer,

competitor and economy cannot be ignored. Hence, the author attempts to trace the

issues and challenges dealing with digital economy and the Competition Act, 2002

including the definition of digital market, application of the Act, powers and functions

of the CCI and some other relevant and upcoming issues which are also highlighted

by the BRICS countries (2019) and the Competition Law Review Committee report

(July 26, 2019). The result of this study is relevant for the concerned authority includ-

ing CCI, National Company Law Appellate Tribunal (NCLAT) and the Ministry of Cor-

porate Affair, Government of India for framing the rules and necessary amendment

in the present Act, 2002 to meet the upcoming challenges.

1|INTRODUCTION

The term digital economy was coined by technology analyst, Don

Tapscott in 1995 in his book named “Digital Economy

1

-Promise and

Peril in the Age of Networked Intelligence”in which he explained how

Internet would significantly modify the way commerce and an econ-

omy built on networks. This digital transformation is rapidly increasing

the economy and would continue to do so in the future. Digital econ-

omy holds many promises towards future regarding innovation and

technological development to promote efficiency and improvement of

goods and services.

2

Due to digital growth in the economy it is pre-

sumed that it would likely to achieve more than 4 trillion dollar in “G

20 countries”.

3

This rapid growth of the economy raises question

relating to sustain fair and healthy competition in the market so that

competition could be promoted along with efficiency and consumer

satisfaction.

4

The digital market functions along with Information and

Communication Technology (ICT)

5

and it is also found that no sector

is left without its significant contribution like “We believe that the

economy works best when it works for everyone, and this new plat-

form (Digital Economy) is an engine for inclusion”. Further, the skill

development techniques are also required to improve digital growth

more rapidly to meet future challenges including workers ICT skills.

The significant infrastructure also plays a worthy role in raising pro-

duction to meet future mandate. This new market hopefully would

create fresh job opportunities in upcoming years, which is a good sign

of growth of the nation in terms of “Digital India.”

6

India is second

largest economy in terms of population which hold approximate 15%

of the world population and the Indian government promisesto invest

Received: 16 April 2020Revised: 25 April 2020Accepted: 20 July 2020

DOI: 10.1002/pa.2301

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https://doi.org/10.1002/pa.2301