Abuse of Dominance in Digital Markets: An Analysis of Indian Competition Law Enforcement

The rapid expansion of digital markets in India has introduced new challenges for competition law enforcement. Unlike traditional one-sided markets, digital platforms operate in multi-sided ecosystems characterized by strong network effects, data-driven business models, and rapidly shifting market dynamics. This article critically examines the enforcement of Indian competition law, particularly the Competition Act, 2002, in addressing abuse of dominance in digital markets. It explores key concepts such as dominance, predatory pricing, and relevant market determination in the context of platform-based digital businesses. Through detailed case studies—including those involving Ola, Uber, WhatsApp, Facebook, Google, and SALPG—the paper highlights the Competition Commission of India’s (CCI) evolving approach to defining market power and identifying anti-competitive behavior. It underscores the limitations of conventional economic tools in assessing dominance and market abuse in dynamic, technology-driven industries. The analysis points to enforcement inconsistencies, challenges in defining relevant markets, and the inadequacy of existing legal standards such as the average variable cost (AVC) test in capturing anti-competitive conduct by digital giants. The paper argues for the development of tailored legal and analytical frameworks that incorporate behavioral economics, consumer lock-in effects, and platform interdependencies. It recommends expanding legal definitions, updating predatory pricing rules, and improving methodologies for evaluating digital mergers, data exploitation, and potential innovation suppression. Ultimately, the study emphasizes the urgent need for a distinct Digital Competition Law in India to ensure fair competition, protect consumer interests, and sustain innovation in the fast-evolving digital economy. With the Ministry of Corporate Affairs and the Committee on Digital Competition Law actively considering such reforms, the article anticipates the formulation of a dedicated legislative framework to strengthen India’s antitrust regime in the digital age.