CCI Launches Market Study On AI's Impact On Competition Dynamics

The Competition Commission of India (CCI) on Monday announced a comprehensive market study aimed at exploring the impact of artificial intelligence (AI) on competition. This inquiry will delve into various aspects of AI, including its potential to influence consumer choices through personalised recommendations, and the implications for pricing and services.

The CCI has issued a Request for Proposal (RFP) to identify and engage an agency or institution that will conduct this detailed study. The move comes at a time when the integration of AI across different sectors has prompted important questions regarding its effects on market dynamics and competition.

One of the core concerns addressed by this study will be examining whether AI technologies can facilitate or directly implement anti-competitive strategies. The study will also investigate the emerging forms of collusion driven by self-learning algorithms and assess whether biases in these algorithms could impact competitive practices.

Additionally, the market study will evaluate how AI-driven approaches in mergers and acquisitions might alter competitive balances, particularly focusing on how these activities could affect innovation, market concentration, and consumer welfare.

With the last date for bid submissions set for June 3, and financial bids due by 28 June, the CCI aims to gather insights that will inform future enforcement and advocacy priorities concerning AI's role in market behaviors. This study will also consider the regulatory and legal frameworks currently governing AI systems and applications both in India and globally, ensuring a comprehensive understanding of how AI technologies are reshaping competitive landscapes.