The emergence of digital marketplaces has resulted in considerable changes in the business sector, with new competitors joining the market, offering novel products and services and challenging the supremacy of traditional players. Although digital marketplaces provide a plethora of pro-competitive benefits, they are prone to anti-competitive practices due to characteristics such as significant network effects, high innovation rates and rapidly changing technologies. This has raised concerns about the potential anti-competitive practices and market abuses that could arise in the digital economy, sparking the question of whether the current regulatory framework of the Competition Act 2002 (2002 Act) is effectively addressing the challenges. It is being seen that enterprises (either global or Indian) have been trying to subsidise users to attract them to the network effects by resorting to a series of big losses, which in other words has raised alarms regarding predatory pricing in the market. People may enjoy discounts given by enterprises. While the immediate benefits of these enterprises may appear advantageous, they will adversely affect customers in the long term, especially as customers become increasingly dependent on their services. In this study, the author illustrates how the current legislation can deal with the unique characteristics or requirements of digital marketplaces. The research further puts forth the negative implications of the ex-ante mechanism with case laws and comparative analysis with international jurisdictions. The findings of the study suggest that India should not blindly replicate what other jurisdictions, especially the European Union are pursuing i.e., taking steps towards enacting a separate digital competition law. The implications of this work would be a deliberate analysis of the provisions of the 2002 Act in line with the working of the Competition Commission of India (CCI) to suggest the adequacy of present law in dealing with competition issues in digital marketplaces.
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