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CCI Flags AI Collusion and Gatekeeping Risks, Urges Companies to Self‑Audit

The non-binding guidance signals a shift toward industry-led governance of AI competition risks.

Overview

  • India’s competition watchdog warned that AI can facilitate algorithmic collusion, price discrimination, predatory pricing, bundling and self‑preferencing, and raise entry barriers.
  • The study includes a voluntary Guidance Note outlining a six‑pillar self‑audit checklist covering governance, design, testing, monitoring, transparency and integration with compliance programs.
  • CCI said it will strengthen in‑house technical capacity, convene a conference on AI regulatory issues, run compliance workshops, set up a dedicated think tank and deepen international engagement.
  • The report cautioned that concentration of data, compute and foundation models by large firms can entrench market power and create gatekeeping over smaller players.
  • A perception survey found 37% of AI startups concerned about AI‑facilitated collusion, 32% about price discrimination and 22% about predatory pricing.