CCI chief Ravneet Kaur highlights the dual nature of AI in markets, promoting efficiency but also posing risks for collusion and discrimination. She advocates for collaborative regulatory strategies to navigate the complexities of modern competition. Recent statistics show the CCI’s ongoing efforts in managing antitrust cases and adapting to evolving market needs.
At the forefront of modern markets, Artificial Intelligence (AI) powers pricing strategies and enhances decision-making, but it also carries inherent risks. CCI chief Ravneet Kaur warned that AI’s capabilities may lead to collusion and algorithmic discrimination disguising as dynamic pricing. At the 10th National Conference on Economics of Competition Law, she urged for a forward-thinking, trust-oriented regulatory approach to navigate these challenges.
Kaur highlighted that conventional enforcement methods based on adversarial relations are inadequate for today’s complex market dynamics. Instead, future regulations need to embrace collaboration. “Today’s competitive landscape is defined by platform economies, network effects, and algorithm-driven decision-making,” she explained. Market power, she noted, increasingly hinges on control over data and platform influence, emphasizing a balanced approach between fostering innovation and maintaining competition.
During the conference, Union minister of State for Corporate Affairs, Harsh Malhotra, advocated for real-time market monitoring to uphold fair competition. Since implementing the Competition Act in 2002, the CCI has tackled over 1,300 antitrust cases, closing 1,180 of them. Last year alone, 42 antitrust filings were received, leading to investigations in 8 cases after preliminary violations were identified, while 19 were dismissed due to no misconduct. By 2024, the CCI reviewed 128 combination notices, successfully disposing of 126.
AI’s integration into markets is transformative but fraught with risks such as collusion and discrimination. The CCI chief emphasizes the necessity for innovative regulatory frameworks to manage these challenges. As market dynamics evolve, collaboration is crucial to balance innovation with competition, ensuring fair marketplace practices.
Original Source: cio.economictimes.indiatimes.com
