AI's role in modern markets could lead to collusion, says CC
AI's role in modern markets could lead to collusion, says CCI chief
Chairperson of the Competition Commission of India Ravneet Kaur highlighted how AI, while driving efficiency, could also be misused in ways that harm fair competition
NEW DELHI — Artificial Intelligence (AI) is transforming markets and business
operations, but it also poses risks, including the potential for enabling
collusion and discrimination, Ravneet Kaur, Chairperson of the Competition
Commission of India (CCI), said on Sunday.
Speaking at the 10th National Conference on Economics of
Competition Law in the national capital, Kaur highlighted how AI, while driving
efficiency, could also be misused in ways that harm fair competition.
Kaur pointed out that AI is increasingly influencing pricing
strategies, decision-making, and operational processes across various
industries.
However, this technological advancement could also lead to
new forms of anti-competitive behaviour, including "cartels without human
communication", "price coordination without explicit
agreements", and "algorithmic discrimination" under the guise of
dynamic pricing.
These practices could harm consumers and disrupt fair market
competition, she warned. “AI shapes pricing strategies, decision-making, and
operational efficiencies across industries but also presents risks,” Kaur
continued.
The CCI is already studying the impact of AI on competition
as it aims to stay ahead of potential challenges in the evolving market
landscape.
Kaur stressed the importance of adopting a forward-looking
approach to regulating AI, one that fosters trust and ensures fairness in the
market.
The CCI Chairperson also provided updates on the regulatory
body's ongoing work. Since the enforcement of the Competition Act in 2002, the
Commission has received more than 1,300 antitrust cases, of which 1,180 have
been resolved.
Last year, the CCI received 42 new antitrust cases, finding
potential violations in eight, which are now under detailed investigation.
