The rapid growth of artificial intelligence (AI) technology has led to concerns about potential risks, such as entrenched bias, ethical concerns, and worsening inequalities. One key area of regulatory worry is the relationship between AI and competition/antitrust law. Developing and deploying AI requires significant resources, including supercomputing infrastructure and high-quality data, which creates a barrier for smaller players and gives larger companies a significant advantage.
Large digital players can secure exclusive licensing agreements for high-quality data, limiting access for competitors and potentially leading to market dominance. AI can facilitate exploitation of market power or foreclosure of competitors through strategies like exclusivity conditions, tying/bundling restrictions, self-preferencing, or lock-in strategies.
Competition authorities in the US, EU, and UK have issued joint statements and reports highlighting potential competition concerns in AI markets. They emphasize the need for protecting competition and propose principles to prevent anti-competitive practices. The Competition Commission of India (CCI) has also taken note of these developments and is working to understand the implications of AI on competition law in India.
Ensuring transparency and accountability in AI decision-making processes is crucial for maintaining fair competition. Developing comprehensive regulatory frameworks to govern AI use and prevent anti-competitive practices is essential. By addressing these challenges, we can harness the benefits of AI while promoting fair competition and protecting consumer interests.
