Some Companies Using AI For Collusion: CCI Chief 

The Competition Commission of India’s (CCI) chairperson Ravneet Kaur has raised concerns about companies using AI for price collusion. 

Kaur, while speaking at the 10th National Conference on Economics of Competition Law, said that companies are deploying AI to coordinate prices without explicit agreements and are engaging in algorithmic discrimination under the guise of dynamic pricing. 

Kaur noted that predictive algorithms may automate collusive behaviour, raising antitrust concerns, PTI reported.

Noting that the competitive landscape is defined by platform economies and algorithm-driven decision-making, the CCI chief said, “The innovation in technology and emergence of new business models are happening at an astronomical pace. At the same time, regulations need to encourage innovation while ensuring that we have a dynamic and proactive approach in balancing innovation with competition.”

In terms of the inadequacies of the traditional model to address the evolving market complexities, the chairperson said that the CCI aims to adopt forward-looking approaches, including trust-based regulations and algorithmic transparency. 

In 2024, the CCI handled 42 antitrust cases, with detailed investigations ordered in 8 cases based on prima facie evidence, the chairperson said. In the same year, 128 merger and acquisition proposals were reviewed, of which 126 cases were disposed of.

At the same event, the union minister of state for corporate affairs, Harsh Malhotra, called for real-time monitoring of markets to ensure fair competition.

Kaur pointed out that the CCI has been actively looking at ways to avoid delays in delivering final orders. She also mentioned the challenges faced in the cases involving Amazon and Flipkart. 

After receiving the CCI director general’s investigation reports, Kaur said cases were filed against Amazon and Flipkart in six different high courts across India. To consolidate these cases and simplify complications arising out of multiplicity of proceedings, the CCI moved the Supreme Court to transfer all the petitions to a single court, the Karnataka High Court.

This comes at a time when the CCI is looking to crack down on alleged unfair practices of digital companies and big tech giants. Last year, Kaur flagged concerns over the “opacity of algorithms” and “data dominance” of digital firms.

In September last year, the watchdog came out with new rules to tighten its grip on big digital players.

In November, the CCI slapped a fine of INR 213.1 Cr on Meta pertaining to WhatsApp’s 2021 privacy policy case. Besides, it is also probing Apple in an antitrust case.