AI may have both pro- and anti-competitive effects, according to CCI, indicating that its effects on competition are complex. According to the market assessment, some of the difficulties include potential concentration in the AI value chain, ecosystem lock-in, algorithmic collusion risk, pricing discrimination, exclusive alliances, and the opaque nature of algorithms.
Fostering Competitive AI Ecosystem
The Competition Commission of India (CCI) said in its most recent market study, which was released on Monday, that its efforts will be focused on creating a culture of competition compliance, ensuring fair competition throughout the AI value chain, and preserving and promoting incentives for innovation in order to foster the development of a “competitive AI ecosystem,” prevent AI-driven anti-competitive practices, and safeguard consumer welfare.
According to the market study, “Artificial Intelligence and Competition,” CCI has made the following decisions: it will hold conferences on “AI and Regulatory issues” in collaboration with pertinent stakeholders; it will hold targeted advocacy workshops on “AI and competition compliance“; it will concentrate on enhancing its technical capabilities and infrastructure; it will establish a think tank to access knowledge on issues pertaining to digital markets, with a particular emphasis on AI; it will take action to encourage inter-regulatory coordination; and it will interact with international competition authorities and multilateral competition platforms.
AI’s Complex Competitive Impact
“The government should continue to prioritize policies and actions that will make it easier for people to utilize AI infrastructure and improve AI capabilities,” the statement said.
The CCI believes that one of the most important tools for combating AI-driven anticompetitive behavior is competition legislation. “In order to handle the new and possible difficulties, international regulatory responses to AI-driven competition concerns are also changing. According to the report, competition legislation can address a number of AI-driven anti-competitive conduct since it is industry and technology neutral.
AI may have both pro- and anti-competitive effects, according to CCI, indicating that its effects on competition are complex. The research concluded, “Although AI offers substantial advantages in terms of efficiency, creativity, and customer experience, it may pose new problems for competitiveness in markets.”
AI Competition Risks Highlighted
Price discrimination, ecosystem lock-in, algorithmic collusion risk, potential consolidation in the AI value chain, exclusive alliances, and the opaque nature of algorithms are some of the difficulties, the report said. Global case law and literature express worries about algorithmic collusion and AI-driven pricing tactics that might result in price discrimination.
Businesses are also encouraged to include “self-audits of AI systems” for competition compliance, which will enable them to proactively detect and rectify any competition issues, in order to guarantee responsible autonomy while shielding markets from distortions. Lack of openness around the use of AI in decision-making might hurt customers and competitiveness. In order to lessen knowledge asymmetry, the research advised businesses to use transparency initiatives.
CCI Strengthens AI Engagement
According to experts, the CCI made a wise and welcome choice to increase its involvement with cutting-edge technology like artificial intelligence (AI) via conferences, seminars, and specialized research.
Kazim Rizvi, Founding Director of Delhi-based tech policy think-tank The Dialogue, said that “The CCI is preparing to tackle AI’s opportunities and challenges in a considered and informed way by building internal expertise and promoting collaboration with regulators, academia, and global partners.”