Bhutan does not impose functional separation on operators with significant market power (SMP) in the telecommunications market. However, the Bhutan InfoComm and Media Authority (BICMA) requires all operators to maintain accounting separation.
According to Art. 51.8 of the Bhutan Information, Communications and Media Act 2018, the BICMA is empowered to ensure the proper maintenance of accounting systems by public ICT providers and media service providers.
In this regard, BICMA issued the Rules and Regulations on Accounting Reports for ICT Services, which apply to all licensed ICT service and facility providers operating within Bhutan. Section 1 of these Rules requires service providers to maintain accounting records and prepare accounting separation reports accordingly.
Furthermore, Section 3.4 of the Rules and Regulations for Licensing and Operation of Internet Service Providers in Bhutan obliges internet service providers to implement accounting separation between their facilities and services by maintaining separate costs and charges for the different services they offer.

According to Section 2.3 of the Rules and Regulations on ICT Facilities and Services in Bhutan, only Bhutanese citizens are eligible to apply for an ICT facility licence, ICT service licence, or a consolidated licence, provided that the applicant does not hold a majority share in any other ICT facility or service licence.
Art. 464 of the Bhutan Information, Communications and Media Act 2018 defines ICT facilities and ICT services, encompassing: (i) telecommunications services, such as public telephony, telegraphy, facsimile, cellular telephony, and pay-phone/communication services; (ii) information technology services, such as internet services; and (iii) transmission facilities, including fixed links and cables, computer facilities, pay-phone/communication facilities, and radio communication transmitters, receivers, and links.
Additionally, the Rules and Regulations for Licensing and Operation of Internet Service Providers in Bhutan establish specific requirements for applications for an Internet Service Provider (ISP) licence.

Bhutan has not appended the World Trade Organization (WTO) Telecom Reference Paper to its schedule of commitments.

Section 28 of the Bhutan Information, Communications and Media Act 2018 establishes the Bhutan InfoComm and Media Authority (BICMA) as an autonomous regulatory authority for the telecommunications sector. It is reported that BICMA operates independently from the government in its decision-making processes.

Annex I, point (p) of the "Payment Aggregators and Payment Gateways Guidelines 2020" stipulates that entities must adopt preventive measures to ensure that data is not stored on infrastructure subject to external jurisdictions, that is infrastructure located outside the country. This requirement is mandatory for payment aggregators and recommended for payment gateways. Under Section 3, payment aggregators are defined as entities that enable e-commerce platforms and merchants to accept various payment instruments from customers, thereby facilitating the completion of payment obligations without necessitating merchants to develop their own payment integration systems. On the other hand, payment gateways are entities that provide the technological infrastructure to route and facilitate the processing of online payment transactions, without engaging in the handling of funds.

Bhutan has not joined any agreement with binding commitments to open transfers of data across borders.

Bhutan is not a signatory of the 1996 World Trade Organization (WTO) Information Technology Agreement (ITA) nor the 2015 expansion (ITA II). In fact, the country is not a member of the WTO.

According to Section 4.1.2.1 of the Procurement Rules and Regulations 2023, a procuring agency may conduct open tendering only under the following circumstances: (i) when certain goods, domestic contractors with the required capacity to undertake specific works, or service providers are not available in the country; or (ii) in donor-funded projects, where the funding agreement requires the procuring agency to approach the international market.

According to Section 1.1.2.3 of the Procurement Rules and Regulations 2023, goods of Bhutanese origin may be granted preferential treatment in any procurement. Where two or more tenders are evaluated as equivalent, preference shall be given to the bid offering goods of Bhutanese origin, provided that the price difference does not exceed 20%. Similarly, for works where tenders from foreign bidders are invited, a margin of preference of up to 20% may be granted to national bidders.

Reports highlight persistent challenges within Bhutan’s public procurement system, notably the need for timely invoice payments via the electronic government procurement (e-GP) platform, comprehensive record-keeping, adequate resourcing and staffing, and improved inter-institutional coordination. Despite an established legal and regulatory framework, practical implementation issues persist. In 2024, controversy arose when the government awarded direct contracts for laptops and desktops to the State Trading Corporation of Bhutan Limited (STCBL), prompting objections from private IT firms on grounds of unfairness, non-compliance with the Procurement Rules and Regulations (PRR) 2023, and insufficient stakeholder consultation. The government subsequently annulled the STCBL contract.

Bhutan is not a party to the World Trade Organization (WTO) Agreement on Government Procurement (GPA). In fact, the country is not a member of the WTO.

Pursuant to Section 5 of the Foreign Direct Investment Regulations, foreign direct investment is permitted in all sectors except those enumerated in Schedule IV. This schedule encompasses, inter alia, news media and “activities included in the Prohibited List of the Royal Government.” The latter list could not be found online, and therefore, it remains uncertain whether the activities specified in Schedule IV extend to the digital domain.

In addition to the sectors where foreign investment is prohibited, the Foreign Direct Investment Regulations 2019 provide that all other sectors, with the exception of certain sectors in Schedules I-III that have ad hoc conditions, are subject to a maximum foreign investor shareholding of 74% (Section 8). The 74% limit therefore applies to virtually all sectors of the economy.

Section 3.7 of the 2019 Foreign Direct Investment Policy provides that any commercial activity carried out by a foreign company requires prior approval, as well as a commercial license, prior to starting operations.
As specified in Sections 56–64 of the Foreign Direct Investment Regulations 2019, investors must register their investment in accordance with the FDI Application Guidelines and comply with the prescribed minimum project cost and equity requirements. Sections 71–76 of the Regulations further stipulate that the Department of Industry reviews and approves priority sector activities listed under Schedules I and II, while proposals for all other sectors are decided by the Project Approval Committee. Once approved, investors are required to obtain a business licence from the relevant Regional Trade and Industry Office within three months.
Schedule V of the Regulations additionally sets out the criteria for the approval of all activities that are not included under Schedules I-III, including a minimum of 40% value addition, positive foreign exchange flows, employment generation, and a long-term plan for skill transfer and progressive Bhutanese employment.
In this regard, Section 40 of the Regulations stipulates that foreign companies may only obtain work permits for foreign employees when qualified and experienced Bhutanese personnel are not available. Sections 45 and 46 further require all foreign companies to implement technical knowledge transfer programs and to progressively increase the employment of Bhutanese nationals, including the requirement to hire at least five permanent Bhutanese workers for each foreign employee before the fifth year of commercial operations.