In an interview with CNBC-TV18, the CCI Сhairperson spoke about the importance of regulating AI technologies and the legal novelties of the new Competition Act.
India's Competition Commission Chairperson Ravneet Kaur feels the Artificial Intelligence (AI) revolution would require India’s anti-trust regulator to be flexible and adaptive in its regulatory approach.
In an exclusive interview with CNBC-TV18’s Parikshit Luthra, Kaur said: "AI-driven markets may tend towards natural monopolies due to network effects and access to data.
“In the AI sector, large amounts of data can give companies a significant competitive edge. This might lead to situations where a few companies control vast datasets, making it difficult for new entrants to compete,"
stressed Ms Kaur.
The Competition Commission of India (CCI) will soon launch a market study to assess the profound impact that AI can have on markets and help the commission come up with a regulatory toolkit. Currently, the anti-trust regulator is in the process of defining the contours of the market study. The CCI Chairperson said that AI could trigger dynamic pricing and personalised pricing strategies which could lead to discrimination among customers.
As a competition agency, CCI needs to be vigilant and stay ahead of the curve and, accordingly, there is a need for a thorough market study on AI to understand these changes, anticipate potential anti-competitive behaviour and develop appropriate regulatory frameworks.
“It is crucial to ensure a level-playing field for all market participants, that fosters an environment where innovation thrives without compromising market fairness,"
said Ms Kaur.
The chairperson said regulations on commitment and settlement, leniency plus regimes, introduced through the new Competition Act, will significantly improve the ease of doing business by reducing litigation. In the same way, the Green Channel route will speed up approvals for certain categories of M&As.
The CCI is carrying out a market study on the cement sector in India to improve enforcement and remedies.
CNBC-TV18 had earlier reported that the government-appointed committee on Digital Competition Law is yet to come to a consensus on regulating digital markets and how work on the proposed digital competition may be deferred till after the 2024 general elections. The CCI did not comment on the working of the committee of Digital Competition Law nor did it give a timeline for a decision on the proposed law.
Source: CNBC-TV18
