Artificial Intelligence May Result in Discriminatory Pricing and Promote Subtle anti-competitiveness : CCI Chief

Artificial Intelligence
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India’s Competition Commission Chairperson, Ravneet Kaur, stated in an interview that the regulator needs to be flexible and adaptive in its approach to regulate the artificial intelligence (AI) sector. She emphasized that AI-driven markets may lean towards natural monopolies due to network effects and access to data.

Kaur mentioned that large amounts of data could give certain companies a significant competitive edge, potentially leading to situations where a few companies control vast datasets, making it challenging for new entrants to compete. The Competition Commission of India (CCI) is set to launch a market study to assess the impact of AI on markets and develop a regulatory toolkit. Kaur highlighted the need for vigilance in the face of the dynamic changes brought about by AI, such as dynamic pricing and personalized pricing strategies that could lead to discrimination among customers. The market study aims to anticipate potential anti-competitive behavior and create appropriate regulatory frameworks.

Kaur also discussed the ongoing market study on the cement sector, stating that it plays a crucial role in understanding how markets operate and identifying potential competition issues. The CCI is adapting its regulatory approach to address competition issues in the digital economy, particularly with tech giants and digital marketplaces. The committee on Digital Competition Law is working to review and address challenges posed by the digital economy.

Kaur did not comment on the committee’s working or provide a timeline for its decision on the proposed digital competition law. The CCI is focusing on new-age markets, including AI, to understand their dynamics and potential competition concerns. Kaur emphasized the importance of staying ahead of the curve and adapting regulatory approaches to the fast-paced evolution of AI technology.

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