Need for Ex-Ante Framework to Regulate Digital Markets Urgent as Ever: Indian Founders to Sitharaman

A clutch of prominent founders from Indian startups have written to Union Minister Nirmala Sitharaman, emphasising that the need for an 'ex-ante' framework to regulate digital markets remains "as urgent as ever", as they sought transparency and inclusivity in the upcoming market study on digital competition.

Charging the global big technology firms and "digital gatekeepers" of being a major force behind publishing copious material opposing `ex-ante provisions', the founders including big names like Anupam Mittal (founder and CEO of People Group) and Murugavel Janakiraman (founder and CEO of Matrimony.com) and others have said such a narrative and "sheer volume of the mnaterial" has the potential to skew perceptions and shape the discourse disproportionately.

"While such perspectives form a part of the debate, they should not dominate it," they said in the letter to the Union Minister for Finance and Corporate Affairs.

Other signatories to the letter dated September 15, 2025, include Snehil Khanor and Amit Gupta (co-founders of TrulyMadly), Vinay Singhal (Co-founder and CEO of STAGE), Ravi Mittal (Founder and CEO of Quack Quack) and Prateek Jain (Associate Director of Alliance of Digital India Foundation (ADIF).

Drawing attention to the continuous challenges being faced by the startup ecosystem arising from Big Tech’s anti-competitive practices in digital markets, the letter thanked Sitharaman for her leadership in shaping India’s digital policy framework.

The startup ecosystem, the founders said, had welcomed the proposal for an ex-ante regulatory framework through the draft Digital Competition Bill, 2024.

Put simply, the ‘ex-ante' provisions aim to ensure that the behaviours of large digital enterprises are proactively monitored, while an ‘ex-post' framework entails intervention after the occurrence of anti-competitive conduct.

"We understand from recent reports that the government intends to withdraw the current draft of the Digital Competition Bill and commission a detailed market study before revisiting the ‘ex-ante' digital competition framework. We see this development to conduct a market study not as a pause, but as an opportunity for deeper consultation and evidence-based policymaking," the letter said.

"We respectfully submit that the underlying need for an ex-ante framework to regulate digital markets remains as urgent as ever," according to the letter.

The founders stressed that in order to ensure that policymaking remains balanced, evidence-based, and reflective of India’s unique needs, it is critical that the upcoming market study is conducted in an independent, rigorous, and transparent manner.

They outlined specific suggestions on the Terms of Reference (ToR) and the selection process for the agency tasked with the study, prior to the issuance of a detailed Request for Proposal (RFP), including inclusion of experts, fair participation, and transparency in bidders’ funding.

Making a plea for clear and well-defined terms of reference to be set out, the letter said that the objectives of the study should be explicitly articulated at the outset, with adequate consideration of perspectives in favour of ex-ante regulation.

"Clearly setting out balanced objectives will help avoid ambiguity and ensure that the study generates actionable insights on critical issues such as consumer welfare, innovation, and the competitiveness of Indian startups," it said.

They also asserted that the proposed market study should draw upon the knowledge of independent experts and institutions, both domestic and global, who have long-standing credibility in this space.

"Such expertise should go beyond large consultancies to include academia, think tanks, and civil society voices. Due consideration should be given to the selection process to ensure that experts are selected based on their academic credentials, independence, and professional standing, so that the study reflects a balanced and comprehensive perspective," the letter added.

India's thriving startup community is committed to building an innovative and competitive digital economy, it said.

"For this ecosystem to grow equitably, a level playing field must be ensured. By commissioning a neutral, transparent, and inclusive market study, the government can create a credible evidence base for future reforms, thereby safeguarding the interests of both Indian startups and consumers," it added.

The letter comes in the backdrop of the decision of the Ministry of Corporate Affairs (MCA) to conduct market studies to consider various aspects of the proposed digital competition law.

In March 2024, the draft Digital Competition Bill was placed on the MCA website for consultations. Responses were received from more than 100 stakeholders, including legal professionals, industry associations, civil society organisations, and domestic and foreign digital enterprises providing digital services in India.

"Based on the suggestions/comments/inputs received, it is felt that an evidence-based foundation through market studies is required to consider all relevant aspects for ex-ante regulation, considering that it is in nascent stage of implementation," Minister of State for Corporate Affairs Harsh Malhotra said in a written reply to the Lok Sabha on August 19.