India: CCI wants policymakers to make careful interventions in startups

Addressing the gathering at CII Mergers Acquisitions and Restructuring Summit 2019 in Mumbai, Manish Mohan Govil, adviser and head of mergers and acquisitions, the Competition Commission of India (CCI) reportedly said that India is a fast-growing internet and ecommerce market. 

Govil said that with rising internet penetration and greater digital maturity of internet users, the startup and internet economy of India is bound to grow faster. And at the same time, policy around the Indian startup ecosystem also needs to take a balanced approach.

Govil said the unique features of tech-dominated sectors in the Indian startup ecosystem include the “network effect,” which creates a winner-takes-all atmosphere. And this also aids expansion of Indian internet companies, but the network effect can come at a price, which policy needs to curb. “While efficiency is a positive externality of network effect, monopoly has also become a norm in these technology-driven markets,” he reportedly said.

Full Content: INC 42

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