According to a Competition commission of India (CCI) market study, enterprises should conduct self-audits of their artificial intelligence (AI) systems to address potential competition concerns, and the watchdog should strengthen its technical capabilities and infrastructure to curb AI-triggered unfair business practices.
The study proposed setting up a think tank to draw upon expertise on matters related to digital markets with special focus on AI and taking steps to promote inter-regulatory coordination.
Further, beyond the emphasis on upgrading CCI’s technical capacity and infrastructure, the study suggested that the regulator engage with international competition authorities and multilateral competition platforms.
The study also noted that its release comes amid concerns about algorithmic collusion and AI-driven pricing strategies that may result in price discrimination. It also warned that a lack of transparency in deploying AI for decision-making can harm competition and consumers, and encouraged enterprises to adopt transparency measures to reduce information asymmetry.
AI can have both pro-competitive and anti-competitive effects on markets. Possible concentration in the AI value chain, ecosystem lock-in, risk of algorithmic collusion, price discrimination, exclusive partnerships, and the opaque nature of algorithms were cited as potential challenges.
Further, the study aimed to understand AI markets and ecosystems, identify emerging and potential competition issues, and review existing and evolving regulatory frameworks governing AI systems.
