CCI Must Leverage Artificial Intelligence to Enhance Anti-Competitive Practice Detection

CCI Chairperson Warns of Growing Anti-Competitive Practices Driven by Artificial Intelligence

The Competition Commission of India (CCI) must adapt to the rapid technological changes brought about by artificial intelligence (AI) and expand its capacities to detect anti-competitive practises driven by such technology, chairperson Ravneet Kaur stated on May 20.

The increasing use of AI tools has made it challenging for the CCI to establish anti-competitive practises, according to Kaur. The commission must go "behind AI applications" to identify at what stage artificial intelligence played a role in contributing to anti-competitive practises. The CCI has noted a rapid adoption of AI in various spheres of the economy, including logistics, healthcare, education, agriculture, and supply chains.

Market concentration in the AI value chain is a growing concern, with AI systems being used being very opaque, said Kaur. The CCI has highlighted price abuse through AI as a significant issue. In October, the anti-trust watchdog released a market study that found AI tools deployed by many businesses could be used to implement predatory strategies by targeting below-cost pricing aimed at price-sensitive customers or those at risk of switching while keeping prices unchanged for other consumers.

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The study noted that retail sellers, including quick commerce and e-commerce platforms, as well as ride-hailing apps, have been deploying AI tools to adopt various strategies such as dynamic pricing and targeted and personalised pricing.

The study suggested that enterprises need to conduct self-audits of their artificial intelligence systems to address potential competition concerns and that the watchdog strengthen its technical capabilities as well as infrastructure.

Digital markets have created new challenges, including data monopolies and the use of technology for various anti-competitive practices, said Kaur. The CCI remains committed to being firm in its enforcement, clear in its procedures, and forward-looking in its vision, according to Kaur.

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