Ravneet Kaur, CCI chief, highlights the dual role of AI in market dynamics, shaping pricing and decision-making while posing risks like collusion. She calls for forward-looking regulations as the CCI investigates AI’s effects on competition.
Artificial Intelligence (AI) emerges as a pivotal element in today’s marketplace, significantly influencing pricing strategies, decision-making, and operational efficiencies across various industries. However, Ravneet Kaur, chief of the Competition Commission of India (CCI), warns of the inherent risks associated with AI, particularly its potential to facilitate collusion and algorithmic discrimination masquerading as dynamic pricing.
During her address at the 10th National Conference on the Economics of Competition Law, Kaur stressed the pressing need for forward-looking and trust-based regulations concerning AI. She pointed out that AI can lead to novel forms of collusion without direct human interaction, including cartels that coordinate prices silently and employ dynamic pricing tactics that obscure discriminatory practices.
The CCI is already proactively investigating the implications of AI on competition, having received more than 1,300 antitrust cases since the enactment of the Competition Act in 2002. Out of these, 1,180 cases have been resolved. In 2023, 42 new antitrust matters were introduced, with 8 showing prima facie violations, prompting thorough investigations. Conversely, 19 cases were dismissed as non-violative, while 15 remain under inquiry.
In summary, Ravneet Kaur underscores both the transformative impact of AI on modern markets and the necessity for vigilance against its potential to facilitate collusion. With rigorous scrutiny from the CCI, the adoption of responsible AI regulations becomes crucial to safeguarding fair competition in evolving marketplaces.
Original Source: telanganatoday.com
