Digital Competition Bill & DPDP Act To Reshape India's E-Commerce Market

(MENAFN- KNN India) New Delhi, Dec 31 (KNN) India's e-commerce landscape is set for significant transformation in 2025, with major platforms like Amazon and Flipkart facing enhanced regulatory oversight aimed at protecting competition and consumer data privacy.

The implementation of the Digital Personal Data Protection (DPDP) Act and the forthcoming Digital Competition Bill are poised to fundamentally reshape how these companies operate in the Indian market.

These platforms are already under scrutiny fr0m multiple regulatory bodies. The Competition Commission of India is investigating allegations of preferential treatment for select sellers, while the Enforcement Directorate has conducted raids across 19 locations following reports of prohibited control over seller inventories.

Commerce Minister Piyush Goyal has specifically criticised Amazon's substantial financial losses, suggesting possible predatory pricing practices designed to undermine competition.

The DPDP Act, once its rules are notified, will introduce stringent regulations governing consumer data handling. E-commerce platforms will be required to limit data collection to essential services, provide clear communication about data usage purposes, and adhere to user-specified retention periods.

According to PwC, this presents significant challenges for companies currently managing extensive consumer information, necessitating comprehensive system and process overhauls.

Further regulatory pressure will come fr0m the proposed Digital Competition Bill, which introduces the concept of systematically significant digital enterprises (SSDEs).
These designated entities will face strict requirements regarding fair dealing practices and restrictions on self-referencing and anti-steering tactics, with the CCI serving as the primary enforcement authority.

Beyond regulatory challenges, the sector is witnessing increased competition fr0m quick commerce players such as Blinkit, Swiggy's Instamart, and Zepto. In response, both Amazon and Flipkart have initiated quick commerce pilots in Bengaluru.

The platforms are also embracing artificial intelligence to enhance personalisation, with Flipkart launching its virtual assistant Flippi and Amazon India developing its conversational assistant Rufus, though industry experts suggest further advancements are needed to meet evolving consumer expectations.

(KNN Bureau)

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