Ex-post, not ex-ante

Regulation can't be rigid in the digital space as it keeps evolving at an extraordinary pace

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THE MINISTRY OF corporate affairs (MCA) and the Competition Commission of India (CCI) seem to have finally realised the futility of pushing for an ex-ante regulatory framework to prevent anti-competitive conduct in the digital space. This shift in stance is reflected in the recent remarks by minister of state for Corporate Affairs Harsh Malhotra and CCI chairperson Ravneet Kaur at an event on economics of competition law. Though they spoke on different aspects, a common theme was that while regulation is necessary, it cannot be rigid in an industry that keeps evolving at an extraordinary pace. While Kaur pointed out the rapid advancements in artificial intelligence (AI) and their implications for market behaviour, Malhotra emphasised the need for adequate deliberations before implementing a Digital Competition Law. Together, their statements present a case for a flexible, continuously evolving regulatory approach rather than an immediate leap into an ex-ante framework.