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Issues pertaining to growth of digital economy: An arduous challenge before CCI
Abstract
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 challenges 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 including CCI, National Company Law Appellate Tribunal (NCLAT) and the Ministry of Corporate Affair, Government of India for framing the rules and necessary amendment in the present Act, 2002 to meet the upcoming challenges.
... La innovación digital está dando lugar a la aparición de nuevos modelos de negocio y formas de generar valor. A través de plataformas digitales, se está acelerando el desarrollo socioeconómico y se están creando nuevas oportunidades laborales, así como mejor acceso a la educación, entre otras ventajas (Banco Mundial, 2019b;Sandoval y Hernández, 2018;Saini y Kumar, 2020). ...
Digital transformation is essential for companies to adapt to technological changes in the era of globalization. This quantitative, non-experimental, descriptive study focuses on technology firms in Sinaloa, Mexico. The objective is to assess their level of digital transformation, examine the relationship between workers' skills and their salaries, and analyze the strategies employed for a successful transition. Two questionnaires using Google Forms were administered: one targeted managers and the other workers, during the final quarter of 2022. Through analysis of the responses using SPSS software, it was determined that companies are operating at an intermediate level of digital transformation. Additionally, a salary polarization based on employee skills was identified. Companies also implement strategies to train their workforce and effectively address digital challenges.
... KSA possesses a wide range of human resources, minerals, fisheries and oil resources, and it can offer more multinational companies to increase non-oil revenue. Setting up multinational companies in their soil will encourage the local entrepreneurs to support their community, rather than importing from countries involves in mass manufacturing (Saini and Kumar, 2020). ...
Purpose
This study mainly focuses on the potentiality of the e-commerce industry's opportunities and limitations in the Kingdom of Saudi Arabia (KSA) specifically toward non-oil revenue sectors.
Design/methodology/approach
E-commerce contribution to the retail market industry becomes more global and more flexible with the rapid growth of the Internet and information technology revolution. A new way of conducting business is rendered by e-commerce, which helps to make a profit electronically.
Findings
The main contributions of e-commerce are management of company operations, easy and cheaper ways of extending their markets and coordinating with the value chain across different borders. In addition, the Internet and e-commerce are responsible for removing language barriers, cultural diversification and extending the market to the national boundaries. The countries would have many innovative and dynamic aspects by the beginning of the global market that increases national revenue, market, employment opportunity, capital and access to technology and information.
Originality/value
At present, KSA's national revenue mostly depends on oil and its related commodities, while other trades compete with the global market and increase national income. So, it is essential to increase other Saudi products to reach a global business level through e-commerce. Moreover, the study suggests accessing new markets and participating in global production to improve e-commerce structure without affecting current employment patterns, industry structure, productivity and Saudi culture.
A growing trend shows that global economic power is shifting away from the United States and Europe and towards the BRICS nations. The BRICS nations are predicted to hold the dominant position in the world by 2050. The rapid development of these economies and their markets is also raising a serious concern for the national antitrust enforcement authorities of the BRICS countries in their respective jurisdictions. This study attempts to examine the effectiveness of antitrust law, with a special focus on new developing trends in each of the BRICS jurisdictions. In addition, the study examines the proposed changes and limitations of the Indian Competition (Amendment) Bill 2022. The study reveals that the national antitrust laws and their enforcement processes are not fully developed and in need of considerable changes. Furthermore, the study indicates that while the proposed Amendment Bill 2022 is a progressive step in the right direction, it fails to cover certain key areas of the digital era, requiring further modifications to anticipate future impacts of economic development. In conclusion, the author recommends some points for effective policymaking, along with their future implications.
Can adoption of an antitrust/competition law substitute for a formal competition policy that lays down principles for reforming other government policies that affect competition? We address this question in the context of India, which has a track record of antitrust enforcement as well as a history of extensive controls over the private sector and domination of key sectors by state owned firms. After briefly summarizing these features, we argue that several clauses of the Competition Act, 2002, allow the Competition Commission of India (CCI) to challenge public restraints on competition. We then undertake a detailed review of several cases that have addressed public restraints and that have gradually extended the jurisdiction of the Act. We also identify some areas that remain beyond its reach—government policies that violate competitive neutrality, and discretionary purchases by public buyers—and we note possible social or business justifications for such restraints. Finally, we briefly discuss conflicts between the CCI and other regulatory agencies. We suggest that these remaining challenges can be addressed without laying down a broader policy.
The digitalisation of the economy with data as the new critical resource is a technological revolution which requires an adaptation of the legal framework for markets and the economy. This paper analyzes the privacy concerns in the digital economy from an economics perspective. What can we learn from economics whether and to what extent we need legal rules helping to protect privacy? Particularly important are the complex tradeoff problems between benefits and costs of privacy and disclosure. This paper claims that it is not sufficient to look for policy solutions only in one field of the law, as, e.g. competition law or data protection law, rather an integrated approach from different regulatory perspectives is necessary. This paper focusses on competition policy, consumer policy, and data protection policy as the three main regulatory perspectives that are relevant for privacy concerns. For all three policies it is discussed from an economic perspective how these policies might help to remedy market failures in regard to privacy rights and privacy preferences of individuals, and how a more integrated regulatory approach can be developed.
In 2009, India repealed its 40 year old Monopolies and Restrictive Trade Practices (MRTP) Act, and brought into force most sections of the 2002 Competition Act. After a brief introduction to the basic economic principles underlying modern competition law, this paper reviews the country’s experience with the MRTP Act. It argues that the way the Act was structured, amended, interpreted and enforced ensured that it could not serve as a competition law. Consequently, it did not bequeath a body of expertise that could help in the implementation of its successor, the Competition Act, which is very demanding in terms of economic analysis. The strengths and weaknesses of the new law, the reasons for its delayed implementation, and the first few decisions of the Competition Commission of India (CCI) are then discussed. Although in many respects the new regime marks an improvement relative to the MRTP Act and MRTP Commission, there are also several potentially serious problems. In particular, “contribution to economic development” may be employed in deciding on mergers or abuse of dominance; provisions on anti-competitive agreements may be interpreted to allow a rule of reason even for cartels; those on abuse of dominance give the CCI authority to take action even in cases where there is no adverse effect on competition. The sections governing merger review remain very controversial, and had not been brought into force as of September 2010. The CCI and the tribunal set up to hear appeals from its decisions have been saddled with a huge backlog of unresolved cases and investigations that were pending with the MRTP Commission. Finally, the long delay (from 2003 to 2009) in bringing the Act into force has resulted in the departure from the CCI of all the staff members who had acquired some familiarity with competition analysis.
Opportunities and challenges of digital India programme
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Issues and challenges of e‐commerce and M‐commerce in India–a study
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Competition Laws and the Indian economy
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