Survey Claims MSMEs’ Fear Reduced Ad Spend Under Digital Competition Bill

New Delhi, Dec 16 (KNN) A new survey conducted by The Dialogue, a prominent public-policy think tank, has shed light on the potential implications of the proposed Digital Competition Bill (DCB) for India’s rapidly expanding digital economy.

The study focuses on the challenges the bill could pose for micro, small, and medium enterprises (MSMEs) and startups, which rely heavily on digital services to sustain and grow their operations.

MSMEs and startups represent the backbone of India’s economy, driving innovation and creating jobs.

The survey reveals that 71.6 per cent of respondents fear that restricting tailored ad placements—an integral part of digital marketing—could significantly reduce their advertising reach.

Additionally, 47.7 per cent of MSMEs anticipate operational inefficiencies if bundled services, such as integrated payment systems or promotional deals, are prohibited.

The report, titled “Implications of the Proposed Digital Competition Bill for Small Businesses in India: A Survey-based Study”, surveyed over 300 participants, of which 96 per cent were MSMEs and 89.6 per cent startups.

The findings underscore the indispensable role of digital services in enhancing business operations. 82.2 per cent of respondents reported increased market effectiveness, while 76.4 per cent noted improved expansion capabilities, highlighting the transformative impact of digital tools.

Entrepreneurs also cited cost optimisation as a major benefit of digital services. Reduced customer acquisition costs, better returns on marketing investments, and lower logistics expenses were among the key advantages, with 69.1 per cent of respondents recognising significant savings.

The report urges policymakers to adopt a balanced and context-sensitive approach to the DCB, rather than enforcing blanket regulations that could stifle innovation and entrepreneurship.

Targeted measures addressing specific anti-competitive practices are recommended, alongside leveraging the Competition Commission of India’s (CCI) existing enforcement mechanisms.

As India’s digital economy grows, experts emphasise the need for thoughtful regulation that promotes fair competition while nurturing the ecosystem that empowers small businesses to thrive in a global marketplace.

The DCB’s outcome will play a crucial role in shaping the future trajectory of India’s MSMEs and startups.

(KNN Bureau)

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