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India’s Antitrust Regulator Flags AI Collusion Risks, Calls for Enterprise Self-Audits

The CCI’s new market study sets a preparedness plan centered on industry self-regulation with clearer algorithmic disclosures.

Overview

  • The CCI released its AI market study detailing risks such as algorithmic collusion, price discrimination, predatory pricing and self-preferencing, while noting Indian evidence remains indicative.
  • The watchdog urges enterprises to run self-audits that document AI governance, algorithmic objectives, data sources and access protocols, with periodic reviews to catch unintended anti-competitive outcomes.
  • The report advances industry-led self-regulation with proportionate safeguards and transparency standards to reduce information asymmetry in AI-driven decision-making.
  • It warns that control of data, cloud infrastructure and proprietary models can entrench incumbents through bundling, exclusive partnerships and ecosystem lock-in that raise entry barriers.
  • Next steps include building the CCI’s technical capacity, coordinating with global authorities, creating a dedicated think tank, and hosting a conference and advocacy workshops, with the study noting EU AI Act penalties of up to €35 million or 7% of global revenue.