Artificial Intelligence (AI) is transforming modern markets, driving innovation and efficiency. However, its potential to enable collusion and algorithmic discrimination presents new challenges for regulators. The Chairperson of the Competition Commission of India (CCI) highlighted these concerns, noting that AI can facilitate new forms of collusion through dynamic pricing strategies. As the influence of AI grows, market power is increasingly determined by data control, network effects, and platform reach.
The CCI has been actively addressing antitrust issues since the enforcement of the Competition Act in 2002. Over 1,300 antitrust cases have been received, with 1,180 disposed of, reflecting the CCI's commitment to maintaining competitive markets. In 2024 alone, the CCI handled 128 combination notices, disposing of 126 cases. Two cases required remedies to safeguard competition before approvals were granted.
Recognizing the implications of AI on competition, the CCI is conducting a dedicated study on AI's impact. Last year, the commission received 42 antitrust cases, identifying prima facie violations in eight, which led to detailed investigations. Meanwhile, 19 cases were closed at the preliminary stage due to a lack of evidence of violations, and 15 remain under inquiry.
To further address these emerging challenges, the CCI is organizing conferences to discuss the economics of competition law. These forums aim to foster dialogue and develop strategies to ensure fair competition in an AI-driven market landscape.