AI's impact on fair competition: Test first, legislate later

Artificial Intelligence (AI) has moved from the laboratory into the heart of commerce, with algorithms setting cab fares, recommending films to watch and increasingly determining prices in online marketplaces.

- ANISHA CHAND

For antitrust agencies, this raises a key question: Are existing tools enough, or do we need a new AI-specific competition law? On Monday, the Competition Commission of India (CCI) released the report of a study designed to identify harms that AI may cause and evaluate whether the Competition Act of 2002 can address them. Its findings may shape our regulatory path.

Unlike the EU, which has passed the world’s first Al law, India does not have an Al statute. Instead, authorities are exploring AI in a sectoral and thematic way. The ministry of electronics and information technology (MeitY) has issued a National Strategy on Artificial Intelligence '#AlforAll,' and is discussing a broader Al framework, with a role in policy coordination for the IndiaAI platform. The Niti Aayog has published a paper on 'Responsible AI' and the Digital Personal Data Protection (DPDP) Act of 2023 introduces obligations that intersect with Al-driven markets. These suggest India prefers an incremental, evidence-based approach.

The CCI has focused specifically on AI's risks to fair competition. The key is to strike a balance: i.e., mitigate risks without stifling innovation or overreaching into areas better handled by privacy, intellectual property (IP) or sectoral regulators. So, what are the risks of AI to fair competition?

Algorithmic collusion: