Daijiworld Media Network - New Delhi

New Delhi, Mar 16: Artificial Intelligence (AI) is revolutionizing markets and business operations, but it also brings potential risks, including collusion and discrimination, warned Ravneet Kaur, Chairperson of the Competition Commission of India (CCI), on Sunday.

Speaking at the 10th National Conference on Economics of Competition Law in the national capital, Kaur emphasized that while AI enhances efficiency, it can also be misused in ways that threaten fair competition.

She noted that AI is increasingly shaping pricing strategies, decision-making, and operational processes across industries. However, this progress also paves the way for novel forms of anti-competitive behavior, including “cartels without human communication,” “price coordination without explicit agreements,” and “algorithmic discrimination” disguised as dynamic pricing.

“These practices could harm consumers and undermine market fairness,” Kaur cautioned. “AI is redefining how businesses operate, but it also introduces risks that must be managed proactively.”

To address these concerns, the CCI is actively studying AI’s impact on competition, ensuring it remains prepared for emerging challenges in the evolving market landscape.

Kaur stressed the need for a forward-looking regulatory approach that promotes trust and maintains market fairness. She also provided updates on the CCI’s enforcement efforts.

Since the Competition Act came into force in 2002, the Commission has received over 1,300 antitrust cases, with 1,180 cases already resolved. In 2023 alone, 42 new antitrust cases were registered, with eight currently under detailed investigation after initial findings suggested possible violations.

Additionally, the CCI closed 19 cases at the prima facie stage due to a lack of evidence of violations.

“In 2024, the Commission received 128 combination notices related to mergers and acquisitions, of which 126 cases have been resolved,” Kaur stated. She added that in two instances, the CCI granted approvals with remedies to safeguard competitive integrity.

As AI continues to evolve, regulatory bodies like the CCI are focusing on striking a balance between fostering innovation and preventing unfair market practices to ensure a competitive and consumer-friendly business environment.