The Dialogue’s Conference: Experts Call for a Balanced Competition Policy to Support Innovation and India’s Economic Priorities

India’s approach to competition policy in the digital economy should be aligned with its broader strategic objectives around technology and innovation, experts noted at The Dialogue’s 3rd Annual International Conference on Competition Law in the Digital Age. A high-powered cohort of scholars, economists, and legal experts emphasised the importance of ensuring that competition frameworks evolve in tandem with long-term innovation goals, particularly as emerging technologies like AI continue to transform market dynamics.

India’s Role in Shaping Global Digital Trade

Setting the tone for the discussion, Shri Sasmit Patra, Hon’ble Member of Parliament, said, “India is fast becoming a global hub for cross-border capital investment, driven by a digitally integrated, innovation-led economy. Considering that MSMEs form the backbone of this transformation, it is important to leverage digital platforms and supportive policies to enhance competitiveness, streamline market access, and expand global reach. A forward-looking competition policy framework that promotes interoperability and cross-border regulatory coherence is the need of the hour. It would help ensure a level playing field for domestic enterprises and smaller players, helping India emerge as a key player in shaping inclusive and resilient digital trade ecosystems”

Fostering Innovation through Forward-looking Policy Approaches

A focal point of the discussion was the consideration of ex-ante framework to provide a level playing field for smaller players in fast-evolving digital markets. International precedents like the EU’s Digital Markets Act (DMA) which promised swift and decisive action in the digital market, have revealed limited value in light of time consuming process, ambiguous definitions of fairness and high compliance standards. Thus, the experts highlighted the importance of adopting forward-looking policy approaches that foster innovation and in turn, benefit consumers - a task that the Competition Act, 2002 was set out to do.   

Highlighting global regulatory shifts, Prof. Christopher Yoo from the University of Pennsylvania, observed, “The last year has borne witness to a global shift in the discourse around competition, away from narrowly focusing on harms towards enabling growth while managing risk. Ex-ante regulation, though well-intentioned, often lacks the clarity it promises and, as seen in Europe, can stifle innovation by burdening entrepreneurs with legal uncertainty and compliance obligations without always benefiting consumers. Regulation should not be a hammer, but rather a tool to uplift the human condition, fostering innovation, not fleeing from it. Other countries must find a balanced approach, one that doesn’t just regulate for risk, but also empowers growth.”

Focus on Enforcement and Capacity Building 

The experts acknowledged the recent amendments to the Competition Act, particularly the introduction of the settlement mechanism and deal value thresholds, as important steps toward modernising India’s competition framework. At the same time, the discussion highlighted the importance of continued capacity building within the Competition Commission of India, especially to enhance enforcement capabilities in digital markets and emerging sectors such as artificial intelligence.

Kazim Rizvi, Founding Director of The Dialogue, said, “India’s Competition Act has undergone important amendments like the introduction of settlements, to better align with the demands of the digital age. But law is only part of the equation; effective enforcement is equally critical. This is where there remains scope to strengthen the institutional capacity of the Competition Commission of India. The CCI is aware of this, evident in the recent establishment of the Digital Markets Unit, but additional resources and expertise will be essential to address future challenges in an evolving digital economy.”

AI, Geopolitics, and Market Power

As AI becomes increasingly central to global dynamics, panellists emphasised the need for caution in defining markets within the AI space. “Given the evolving nature of AI and the lack of clear boundaries, rigid or premature definitions of dominance may be counterproductive,” noted Shruti Hiremath, Counsel at Clifford Chance. While control over foundational models, compute capacity, and exclusive data partnerships may indicate emerging sources of competitive advantage, panellists recommended a cautious, case-by-case assessment, favouring broad and flexible market definitions over rigid classifications at this early stage.

Participants highlighted the growing geopolitical relevance of competition policy and emphasised that India’s engagement in global forums such as the G20, OECD, and WTO could benefit from a more proactive approach. One panellist noted that India has an opportunity to contribute meaningfully to shaping global norms, particularly as competition law becomes an important tool of economic policy and international engagement.

Empowering Markets Through Infrastructure

Speaking on India’s distinctive approach, Shruti Hiremath, added, “There are two ways to foster competition: regulate some players, as the EU does, or empower all, as India is doing. By building open, interoperable, and affordable digital public infrastructure, India is levelling the playing field without shutting anyone out. It is demonstrating how markets can be made fair through empowerment rather than enforcement, a model worth showcasing to the world.”

Calling for regulatory flexibility, experts stressed that any competition policy must remain open to changes being cogent in fast-changing digital markets. The conference, hosted by The Dialogue and supported by Digital Policy Alert, CoRE-AI, and Scope Globex Exchange, concluded with a call to embed competition policy into India’s broader economic blueprint –balancing consumer welfare, investment flows, and national interests.