CCI Calls Data Access a Key Advantage in Digital Markets
The Competition Commission of India (CCI) has said that access to consumer data gives online businesses a major competitive edge. This view came in its response to the Parliamentary Standing Committee on Finance, which asked about the role of CCI in the digital economy and the possibility of aligning the Digital Personal Data Protection Act (DPDPA) with the Draft Digital Competition Bill (DCB).
Why Data Access Matters
According to the CCI, online companies collect large amounts of consumer data. They use this information to drive innovation and better understand consumer needs, habits and preferences. Because of this, data becomes a strong advantage that helps companies stay ahead.
However, the CCI also warned that weak data protection standards can harm consumers. They reduce service quality and make it harder for new players to compete. This situation can strengthen the power of dominant companies and distort fair competition.
CCI’s Role in Data and Competition
The CCI clarified that it does not regulate data protection by itself. Instead, it looks at how companies use data when competition issues arise. If a business uses data in a way that creates unfair practices, such as blocking rivals or exploiting users, the CCI steps in under antitrust law.
Rules in the Draft Digital Competition Bill
The Draft Digital Competition Bill (DCB) introduces obligations for Systemically Significant Digital Enterprises (SSDEs). These rules stop companies from mixing personal data across services or using it through third parties without proper user consent.
At the same time, the Ministry of Corporate Affairs admitted that overlaps could occur between regulators. For example, SEBI, the Consumer Affairs Ministry, the DPDPA and the DCB all have roles in shaping the digital economy. The Ministry noted that such overlaps may create jurisdiction issues that need careful resolution.
Past Actions by the CCI
Earlier this year, the CCI fined Meta over WhatsApp’s 2021 privacy policy. The regulator found that the policy forced users to share their information with other Meta companies without real choice. This decision stated that Meta had abused its dominant position by creating barriers for rivals in the online advertising sector.
The CCI said that Meta’s approach weakened user autonomy since many people could not switch away from WhatsApp. It concluded that these practices violated sections of the Competition Act, 2002.
International Examples
The issue of data and competition is not limited to India. In Europe, Meta faced penalties for breaching data privacy rules under the General Data Protection Regulation (GDPR). The company’s pay or consent model, which asked users to either share their data or pay a fee, came under investigation. Regulators said it did not allow free consent and fined Meta two hundred million euros.
Why This Debate Matters
The CCI’s stance on data access shows how important data has become in shaping competition. In India, this debate raises concerns about overlapping jurisdictions between regulators. For example, the National Payments Corporation of India (NPCI) plays a central role in the UPI ecosystem. The Reserve Bank of India already oversees NPCI, but the DCB could also bring it under the CCI’s watch.
Such overlaps may create confusion for businesses and raise compliance costs. The government may need to define the powers of each regulator more clearly to avoid conflicts.
Also read: Quick Heal Signs MoU with BHASHINI to Bridge Cybersecurity and Privacy Language Gaps
