The Indian government is exploring the possibility of including artificial intelligence (AI) under the Digital Competition Bill (DCB), a new digital competition law designed to regulate anti-competitive practices in the digital economy. This move is part of a broader effort to address the growing influence of Big Tech in the AI space and ensure a level playing field for all players.
Regulators are concerned about large technology companies exercising control over key inputs, such as data, specialized chips, and technical expertise, which could stifle innovation and undermine competition in AI-related markets. To prevent anti-competitive tendencies and market dominance, the government wants to ensure that the AI space remains open and competitive.
The DCB proposes ex-ante regulations, which require businesses to follow specific obligations and guidelines to ensure fair competition. This approach is crucial in rapidly evolving markets like AI, where the pace of innovation can quickly lead to market dominance. The government also has the flexibility to add new core digital services to the list of markets to be regulated if the need arises, including potentially AI platforms.
Globally, there is a growing recognition of the need to regulate AI and ensure that its development and deployment are aligned with societal values and norms. The US Federal Trade Commission (FTC), Department of Justice (DOJ), European Commission, and UK Competition and Markets Authority (CMA) have released a joint statement on protecting competition across the AI ecosystem, highlighting the importance of international cooperation in regulating AI.
By regulating AI under the DCB, India can ensure that the benefits of AI are shared by all, while minimizing the risks associated with its development and deployment. This move would be a significant step towards creating a more competitive and innovative digital economy in India.
