MCA initiated moves to finalise ‘qualitative and quantitative thresholds’ for large digital cos under proposed law

The Ministry has floated a ‘Request for Proposal’ (RFP) to undertake a Market Study on ‘Qualitative and quantitative thresholds for Big Tech companies and core digital services’ (CDS). 
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The Ministry of Corporate Affairs (MCA) has renewed efforts to finalise threshold of systemically significant digital enterprises (SSDE) for redrafting the Digital Competition Bill (DCB).

Last year, because of strong opposition from various stakeholders including big tech companies, the draft Bill was withdrawn. It was decided that “an evidence-based foundation through market studies is required to consider all relevant aspects for ex-ante regulation considering that it is in nascent stage of implementation.” Accordingly, the Ministry has floated a ‘Request for Proposal’ (RFP) to undertake a market study on ‘Qualitative and quantitative thresholds for Big Tech companies and core digital services’ .

Key objectives

According to the RFP, there will be four key objectives. First, to review and evaluate the proposed qualitative and quantitative thresholds outlined in the draft Digital Competition Bill. Second, to review the list of proposed core digital services included in Schedule I of the draft DCB. Third, to evaluate the implications of the draft DCB on these services and their stakeholders, including the potential impact on competition and market entry. Fourth, to assess the potential impact of the proposed ex-ante framework on smaller players, including start-ups and MSMEs.

Earlier, the draft Bill had said that an entity engaged in “core digital services” will be deemed as an SSDE if it has a turnover in India of at least ₹4,000 crore, or a global turnover of at least $30 billion, or gross merchandise value in India of at least ₹16,000 crore, or a global market capitalisation or fair market value of $75 billion; and if its core digital service had at least 1 crore end users or at least 10,000 business users in India in each of the preceding three financial years.

Now, the study will cover and gather data/facts from major technology firms/ e-commerce platforms, think tanks, domestic & foreign digital enterprises providing digital services in India, relevant start-ups and MSMEs, civil society organisations, experts including from the field of competition law and policy and Industry associations “The sample of stakeholders will be constructed including at least 30 big technology firms/ 30 start-ups/ researchers/domestic firms/MSMEs and 5 firms supplying core digital services,” RFP document said.

Other proposals

Earlier, the draft Bill was proposed with an object of bringing separate Digital Competition Act be enacted and an ex-ante framework be introduced to enable the Competition Commission of India (CCI) to selectively regulate large digital enterprises. Post the submission of the draft, the Ministry initiated e-consultation during March-May 2024. More than 100 stakeholders submitted responses, ranging from legal professionals, industry associations, civil society organisations, and domestic & foreign digital enterprises providing digital services in India.

The important suggestions include ex-ante regulation itself under the DCB may be reconsidered. Second, quantitative thresholds (financial& user) suffer from both over-inclusivity and under-inclusivity and therefore may be reconsidered. Third key obligations related with data usage and tying and bundling respectively) may be reconsidered. And fourth, services included in core digital services list under schedule of the draft may be reconsidered.

Published on November 19, 2025