Artificial intelligence (AI) is fundamentally changing the landscape of modern markets, offering significant advantages while simultaneously introducing new and complex challenges, according to Ravneet Kaur, Chairperson of the Competition Commission of India (CCI).
Speaking at the 10th National Conference on Economics of Competition Law held in New Delhi, Kaur highlighted AI’s transformative role across various industries, particularly in areas such as pricing, decision-making, and operational efficiency. However, she also warned about the potential for AI to facilitate anti-competitive practices, including algorithmic discrimination and collusion.
Kaur emphasized AI’s role as a “driving force in modern markets.” She noted that while the technology enhances market efficiency, it can also enable new forms of market manipulation. According to Business Standard, Kaur explained that AI could facilitate collusion between companies without direct human interaction. This could manifest as “cartels without human communication” and “price coordination without explicit agreements.”
Furthermore, Kaur pointed to the potential for “algorithmic discrimination under the garb of dynamic pricing.” This practice sets prices based on customer profiling and data rather than traditional competition.
In light of the risks associated with AI, the CCI Chairperson stressed the importance of adopting forward-looking, trust-based regulations to mitigate market distortions driven by AI. As AI continues to shape pricing strategies and business decisions, regulators must evolve their approach to competition enforcement.
Traditional adversarial enforcement methods, Kaur argued, are no longer sufficient to address the complexities of the modern market, which is increasingly influenced by AI, platform economies, and network effects.
Per Business Standard, Kaur stated the future of competition law should be characterized by a more collaborative regulatory strategy, one that acknowledges the role of data control, platform reach, and network effects in defining market power today. She underscored the need for regulators to balance encouraging innovation with maintaining fair and open competition to prevent monopolistic practices.
At the same conference, Union Minister of State for Corporate Affairs Harsh Malhotra echoed Kaur’s sentiments, calling for real-time market monitoring to ensure fair competition. With AI redefining market dynamics, both Kaur and Malhotra emphasized the need for regulators to stay ahead of the curve to safeguard competitive market structures.
