Synopsis
AI is reshaping markets but also raises concerns about potential collusion and discrimination, warns CCI Chair Ravneet Kaur. The Competition Commission of India is investigating these risks to ensure fair competition in the evolving landscape.Key Takeaways
- AI can enhance operational efficiency.
- It may lead to new anti-competitive behaviors.
- CCI is monitoring AI's impact on market competition.
- Proactive regulation is essential for fairness.
- Numerous antitrust cases are under review.
New Delhi, March 16 (NationPress) Artificial Intelligence (AI) is revolutionizing markets and business operations; however, it also introduces risks, such as the possibility of facilitating collusion and discrimination, stated Ravneet Kaur, Chairperson of the Competition Commission of India (CCI), during her address on Sunday.
At the 10th National Conference on Economics of Competition Law in the national capital, Kaur elaborated on how AI is enhancing efficiency but can also be exploited in ways detrimental to fair competition.
Kaur emphasized that AI is playing an increasing role in pricing strategies, decision-making, and operational processes across various sectors.
Yet, this technological progress could give rise to new kinds of anti-competitive practices, including "cartels without human interaction", "price coordination without explicit agreements", and "algorithmic discrimination" disguised as dynamic pricing.
Such actions could negatively impact consumers and disrupt fair market competition, she cautioned. “AI influences pricing strategies, decision-making, and operational efficiencies across industries, but it also brings risks,” Kaur added.
The CCI is actively examining the consequences of AI on competition, aiming to proactively address potential challenges in the changing market environment.
Kaur highlighted the necessity of adopting a forward-thinking approach to regulate AI, one that promotes trust and fairness in the marketplace.
The CCI Chairperson also shared updates on the regulatory body’s ongoing initiatives. Since the implementation of the Competition Act in 2002, the Commission has received over 1,300 antitrust cases, resolving 1,180 of them.
In the previous year, the CCI received 42 new antitrust cases, uncovering potential violations in eight, which are currently under detailed investigation.
The CCI also concluded 19 cases at the prima facie stage due to a lack of evidence for violations.
“In 2024, the Commission received 128 combination notices related to mergers and acquisitions, disposing of 126 cases,” Kaur noted.
She further stated that in two instances, the CCI granted approvals with measures to protect competition.
