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CCI Warns AI Could Enable Collusion, Price Discrimination and Lock-In

The watchdog prioritizes self-audits over new rules.

Overview

  • The market study recommends industry-led self-regulation with proportionate safeguards and transparency standards to keep AI use competition-compliant.
  • Enterprises are urged to document governance processes and run regular algorithmic audits to detect unintended anti-competitive outcomes.
  • The report cautions that pricing algorithms can learn to tacitly coordinate and monitor rivals, complicating detection and enforcement under competition law.
  • CCI flags structural risks such as bundling, ecosystem lock-in, and Big Tech advantages in data and infrastructure that raise barriers for smaller providers.
  • The regulator plans capacity building and outreach, including a dedicated think tank, international engagement, and stakeholder conferences and workshops, while situating India’s approach against stricter regimes like the EU AI Act with heavy fines.