In an article on AI competition regulation published by Times Live, South Africa’s Deputy Competition Commissioner, Hardin Ratshisusu, emphasized the urgent need for BRICS nations and other countries to develop effective regulatory frameworks for the artificial intelligence sector.
At the 9th BRICS International Competition Conference, held in Cape Town from September 9 to 11, heads and representatives of the bloc’s antitrust authorities discussed a range of pressing challenges, including growing digital markets and the increasing prominence of artificial intelligence (AI).
AI is no longer a niche input. It is becoming the indispensable infrastructure for the functioning of markets, and markets are transforming at a rapid pace. Some markets may disappear, others will expand and new ones will emerge. Regulators must be prepared for these shifts, stresses Hardin Ratshisusu.
Poorly designed regulation could either stifle innovation or allow dominant players to entrench their market power indefinitely. However, if competition authorities get it right, there is potential to increase productivity, unlock new possibilities in markets and foster inclusion and innovation.
According to the 2025 UNCTAD Technology and Innovation Report, the market value of AI is expected to reach $4.8-trillion (R83.3-trillion) by 2033, or a projected 25-fold increase. The market is, however, highly concentrated at a global level with, as the UNCTAD report showed, the concentration of economic activity predominantly in the US and China. This concentration poses a risk of the Global South falling further behind.
Under Brazil’s 2025 presidency, BRICS leaders issued a leaders’ declaration and leaders’ statement on the global governance of AI, elevating access, inclusion and the needs of the Global South. The declaration is focused on solutions at a multilateral level, inclusive governance and caution against extractive and exploitative approaches. At the last meeting of the BRICS Working Group for the Research of Competition Issues in Digital Markets in Moscow, delegates homed in on AI’s implications for competition, market power in access to chips and cloud, data access and the risks of vertical integration. South Africa warned of a growing “gatekeeper effect” and called for proactive regulatory measures.
The Working Group, coordinated by the BRICS Competition Law and Policy Centre, continues to analyze AI’s impact on competition, including practices such as algorithmic pricing, sensitive data sharing, and the risks posed by generative AI. Experts note that developing economies like South Africa face limited access to AI infrastructure, raising barriers to market entry. Overall, for BRICS countries, key challenges remain access to critical technologies, risks of vertical integration, standardization and interoperability, as well as the need to build their own technological capabilities.
How can BRICS nations get competition regulation on AI right? Drawing on recent discussions within the Working Group, South Africa’s Deputy Competition Commissioner proposes the following measures as a starting point:
- measures to reduce barriers to entry in AI markets;
- effective remedy design;
- joint monitoring of application programming interfaces and possible cloud discrimination; measures to enhance interoperability;
- and co-operation on investigations.
“AI will not wait for BRICS nations to perfect statutes or regulatory approaches. However, with evidence-based approaches, demonstrable policy leadership and deeper cross-border co-operation, BRICS competition authorities can ensure they develop a coherent, proactive response to the unique challenges that come with AI,”
concludes Hardin Ratshisusu.
Source: Times Live
