·The Hindu·15 marks·250–350 words

"When markets colonise every frontier, the citizen becomes a consumer." Examine the implications of platform monopolies for democratic governance.

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In this answer
  1. Implications for democratic governance
  2. Counter-view
  3. Way forward

Platform monopolies are digital firms that are so dominant that they set the rules for users, sellers and information flows. India's Committee on Digital Competition Law (2024) found that the after-the-fact Competition Act, 2002 is too slow for such markets [1]. This matters for democracy because people start to be governed as data-yielding consumers rather than as citizens with rights.

Implications for democratic governance

  • Gatekeeping the public sphere: The committee named search engines, social networks, operating systems and browsers as core digital services [1]. Their algorithms decide what citizens see, but no voter can hold them to account.
  • Data asymmetry: The committee flagged self-preferencing, misuse of business users' data and tying of products [1]. Citizens' choices are tracked and nudged, and consent shrinks to a single click.
  • Private law-making: A platform's terms of service work like rules for millions of people. Because one firm can become dominant before a case ends, the state's oversight keeps falling behind [1].
  • Eroded economic citizenship: Small sellers, gig workers and MSMEs depend on these platforms, so their bargaining power is weak.
  • Sovereignty strain: Platforms operating from abroad reach Indian users. The PROG Act, 2025 therefore covers online money games offered in India even when run from outside the country [2].

Counter-view

  • Platforms have also made participation and public services cheaper to reach.
  • The remedies can concentrate power in the state instead. Under the PROG Act, a MeitY-run Online Gaming Authority decides which games are allowed, and the government carries out blocking and payment cut-offs [2]. The real task is to keep both corporate power and state power accountable.
  • Size limits that are too strict could catch fast-growing Indian start-ups.

Way forward

  • Pass the ex-ante Digital Competition Bill, which sets rules in advance. Large firms would be designated as SSDEs, self-preferencing would be barred, and penalties could reach 10% of global turnover [1].
  • Learn from the EU Digital Markets Act and other G7 digital-market rules [3].
  • Build up the CCI's technical capacity and set up a dedicated NCLAT bench for appeals [1].
  • Make state blocking transparent and open to review, and invest in digital literacy.

Platform monopolies concentrate control over information, data and markets, which weakens citizenship. That control should be regulated in advance and in proportion, not left to markets alone. Rules set ahead of harm, with both companies and the state held accountable, can turn consumers back into citizens, in line with the Preamble's promise of justice, liberty and equality.

Sources

  1. 1PRS India – Report Summary: Committee on Digital Competition Law (2024): Competition Act judged inadequate; core digital services; self-preferencing, data misuse and tying; SSDEs; 10% penalty; CCI capacity and NCLAT bench
  2. 2MeitY – The Promotion and Regulation of Online Gaming Act, 2025: coverage of offshore operators; Online Gaming Authority; blocking and payment cut-offs
  3. 3OECD – G7 Inventory of New Rules for Digital Markets (2024 update): EU DMA and other ex-ante regimes for digital markets

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