Artificial Intelligence (AI) is increasingly shaping modern markets, influencing pricing strategies, decision-making, and operational efficiencies across industries. However, the technology also carries significant competition risks, including the potential for AI-enabled collusion, according to Competition Commission of India (CCI) Chairperson Ravneet Kaur.
Speaking at the 10th National Conference on Economics of Competition Law in New Delhi, Kaur highlighted the need for a forward-looking approach and trust-based regulations to address these emerging challenges.
AI and the Risk of Collusion
Kaur cautioned that AI could enable new forms of collusion, potentially allowing businesses to coordinate without explicit agreements. She noted that AI-driven pricing algorithms could facilitate cartels without human communication and lead to algorithmic discrimination disguised as dynamic pricing.
“AI can enable new forms of collusion such as cartels without human communication, price coordination without explicit agreements, and algorithmic discrimination under the garb of dynamic pricing,” Kaur said.
Given these concerns, the CCI has already launched a study on AI and competition to assess the risks and regulatory measures needed to prevent anti-competitive practices in AI-driven markets.
Also read: India Plans AI Oversight Board for Governance
India’s Antitrust Landscape
Since the implementation of the Competition Act, 2002, the CCI has handled more than 1,300 antitrust cases, disposing of 1,180 cases to date.
In 2023, the regulator received 42 antitrust complaints, of which:
- 8 cases were found to have prima facie violations, prompting further investigation.
- 19 cases were closed due to no violation being detected.
- 15 cases are still under inquiry.
Additionally, the CCI reviewed 128 merger and acquisition proposals (combinations) in 2024, clearing 126 cases. Notably, two deals required conditional approvals with remedies to safeguard competition.
Regulating AI in a Competitive Market
As AI adoption accelerates across industries, regulatory challenges are mounting, particularly in ensuring fair competition, preventing AI-driven price manipulation, and protecting consumers from algorithmic biases.
The CCI’s study on AI is expected to provide deeper insights into how AI interacts with competition law and help shape regulatory frameworks that balance innovation with fair market practices.
With global antitrust watchdogs also scrutinizing AI-powered market behaviors, India’s approach to AI regulation could have far-reaching implications for businesses, digital markets, and consumers alike.
