On April 23, the latest meeting of the BRICS Working Group for the Research of Competition Issues in Digital Markets was held at the National Research University Higher School of Economics (HSE University). This time, the WG focused on artificial intelligence (AI) and the implications of its use for competition in the economies of the BRICS countries. The event took place within the framework of the International Conference – an Expanded Meeting of the Board of the Federal Antimonopoly Service (FAS) of Russia – dedicated to the 35th anniversary of antimonopoly regulation in Russia in 2025. The Working Group is co-chaired by the FAS Russia and Brazil’s Administrative Council for Economic Defense (CADE).
AI technologies – from virtual assistants to sophisticated recommendation algorithms that are transforming the way users interact with technology and the world around them – have been rapidly advancing in recent years, increasingly permeating various aspects of daily life. At the same time, the concentration of power in the AI market in the hands of a few major corporations is exacerbating inequality in access to advanced technologies and data, and hindering innovation by creating barriers to market entry for new players, noted the meeting's moderator, Deputy Head of the FAS Russia, Andrey Tsyganov. He invited the participants to discuss general issues related to the impact of AI on the competitive environment, potential risks and consequences of its application in digital markets, as well as antimonopoly tools of competition authorities using AI technologies.
Information, rather than physical assets, is becoming the key resource in the modern economy, emphasized Sergey Puzyrevsky, State Secretary and Deputy Head of the FAS Russia. He spoke about the work of the Headquarters for Joint Investigations of Violations of the Antimonopoly Law of the CIS Member States, under which a decision was made to examine the impact of artificial intelligence on competition. The research focuses on three main areas: unilateral conduct by companies using algorithmic pricing; risks of coordinated behavior between market participants facilitated by AI to circumvent bans on anticompetitive agreements; and the consequences of economic concentration, where transactions increasingly involve technologies rather than tangible assets. The Deputy Head of the FAS also stressed the importance of integrating AI into the operations of antimonopoly authorities. The results of the study are expected to be presented, among others, to the BRICS Working Group.
Alexey Ivanov, Director of the BRICS Competition Law and Policy Centre, noted that the AI market is growing rapidly and, according to UNCTAD estimates, could reach $4.8 trillion by 2033, while remaining highly concentrated. Key segments of the AI value creation chain — such as lithography (the technology used to produce microchip circuits) and cloud services — are controlled by a small number of large companies. Despite the presence of notable national players in BRICS countries, the global market remains dominated by major tech corporations. Companies like Microsoft, Google, NVIDIA, and others play a central role, strengthening their market position through investment, infrastructure control, and strategic partnerships. For example, Microsoft holds a 22% share of the cloud market, owns platforms such as GitHub and LinkedIn, actively patents technologies, and in 2023 entered into a landmark partnership with OpenAI, the developer of the ChatGPT.
In the photo: Alexey Ivanov, Andrey Tsyganov © HSE
Alexey Ivanov stressed that antitrust regulators are still not paying enough attention to the risks posed by growing technological inequality driven by limited access to AI infrastructure. He argued that widening gaps in access to general-purpose technologies — whether electricity, the internet, or AI — can deepen both social and economic divides.
"Antitrust law was born as a response to exactly these kinds of transformations," Mr. Ivanov said. "Today, rising inequality is an existential threat—and it's something competition authorities can and must help mitigate. This is our opportunity to reaffirm the relevance of antitrust policy and steer technological progress in a fairer direction."
The issue of inequality was also highlighted by Teresa Moreira, Head of the Competition and Consumer Policies Branch at UNCTAD, who noted that most international initiatives for AI governance have so far come from G7 countries. In recent years, the United Nations has launched several initiatives of its own, including the 2024 “Pact for the Future,” which underscores the need for global cooperation to promote coordination and interoperability of emerging AI governance systems, while ensuring fair and inclusive approaches to harnessing the benefits of the technology.
Jia Kai, Associate Professor at the School of International and Public Affairs at Shanghai Jiao Tong University, emphasized the importance of open AI models for promoting competition. He pointed out that China’s DeepSeek model, built on open-source software, is already comparable in performance to OpenAI’s products and showcases the potential of such solutions to reduce monopolization in the digital space. He added that open models like Alibaba’s Qwen are helping to democratize access to technology—especially in developing countries—but also raise new regulatory and institutional challenges that must be addressed.
Maria Bolshakova, Deputy Director General of the Regional Commonwealth in the Field of Communications (RCC), spoke about a model law titled “On Artificial Intelligence Technologies” and outlined plans to develop specific guidelines on various aspects of AI system operations. She also highlighted the pressing need to create a regulatory framework for the deployment of metaverses, which she described as “a convergence of physical, augmented, and virtual realities into a shared online space,” increasingly viewed as part of the broader AI ecosystem. Bolshakova further pointed to several emerging issues relevant to antitrust policymaking as AI systems evolve.
In the photo: Maria Bolshakova, Alexey Ivanov, Andrey Tsyganov © HSE
Valentin Makarov, President of RUSSOFT, outlined four key areas in AI development that are particularly vulnerable to monopolization: engine development (software platforms), hardware solutions, access to big data, and applied AI solutions. He identified hardware as carrying the highest risk—rating it 5 out of 5—pointing specifically to NVIDIA’s dominant market position, which could hinder the growth of AI applications in countries without access to cutting-edge equipment. He also flagged limited access to big data as a major concern, warning that if such data remains in the hands of only a few major players, it will create significant barriers to competition.
"It’s essential to anonymize data and make it accessible to as many developers as possible—especially in BRICS countries," Mr. Makarov stated. "The more data used, the more accurate and effective AI solutions become. Broadening access to big data in fields such as medicine, chemistry, and other scientific domains could accelerate technological progress and help BRICS countries rise to the level of global tech leaders."
Representatives of the Federal Antimonopoly Service (FAS) of Russia, Oksana Kuznetsova and Oleg Dubkov, shared how the agency is leveraging AI tools in its operations. Among these are the administrative data platform of the Russian Federal Tax Service, the digital product labeling system “Chestny ZNAK,” and the GIS “Anti-Cartel” system, which automates the monitoring of public procurement to prevent and detect anticompetitive agreements.
Similar AI technologies are also being utilized by Brazil’s antitrust authority, CADE. Since 2014, the agency has employed the “Cérebro” program to strengthen its fight against cartels. Guilherme D. Alessandro Silva, coordinator of CADE's Intelligence Unit, explained how the system is used in practice. Investigations also involve tools like Power BI, network analysis, and behavioral screening, which help identify suspicious patterns in bidding processes.
“The project continues to evolve, incorporating research in AI, web scraping, and natural language processing (NLP), with a strong focus on data protection, ethics, and transparency,”
Mr. Silva noted.
Farrukh Karabaev, Deputy Chairman, Competition Promotion and Сonsumer Protection Committee of the Republic of Uzbekistan, shared his country’s experience using the FAIR Tech information system to monitor public procurement and analyze pricing across various markets. He noted that Uzbekistan’s regulator is actively studying international best practices and emphasized the importance of supporting smaller economies in crafting strategies to limit the dominance of global corporations in the digital and AI sectors.
Against the backdrop of rapid AI development, competition authorities are struggling to keep up, lamented Hardin Ratshisusu, Deputy Commissioner of the Competition Commission of South Africa. He pointed out that issues related to big data and digital markets have been on the agenda for over a decade but remain unresolved. Currently, South Africa’s regulator is focusing on the disruptive impact AI has on traditional media, whose content is often used to train AI models without compensation. As part of its Online Intermediation Platforms Market Inquiry and Media and Digital Platforms Market Inquiry, the Commission has issued recommendations aimed at e-commerce platforms and major tech companies such as Google. The measures are crafted to ensure that even small-scale transactions in the AI sector do not escape regulatory scrutiny, Mr. Ratshisusu stressed.
© HSE
The BRICS Competition Law and Policy Centre should take a leading role in shaping a collective approach to AI regulation, including potential legislative reforms and market studies, according to Mr. Ratshisusu.
“AI markets are critical for innovation and the participation of small and medium-sized enterprises,” he said. “Our approach must be proactive to ensure fair competition in a rapidly evolving digital environment.”
Lile Wang, Director of the Second Department of Antimonopoly Law Enforcement of the State Administration for Market Regulation of the People's Republic of China (SAMR), spoke about AI regulation in China. The country’s AI industry is expanding rapidly, with a market size approaching 600 billion yuan (around $84 billion), over 4,000 companies, and more than 300 generative AI models. In this context, the regulator is placing particular focus on acquisitions of AI startups by tech giants. Merger control thresholds have been raised, and the regulator now has the authority to request notifications of transactions if there is reason to believe they may harm competition—even if those deals fall below formal thresholds. This approach helps prevent so-called “killer acquisitions.”
“Additionally, since 2022, we have implemented a digital system for reviewing merger and acquisition deals, which has simplified the process, provided remote access, and helped us review over 2,000 cases, significantly improving the efficiency of our work,”
Mr. Wang added.
At the conclusion of the meeting, Andrey Tsyganov proposed considering the preparation of a joint statement by BRICS competition authorities on issues related to digital markets, the principles of AI development, and its impact on competition in BRICS countries, emphasizing the importance of international cooperation in this area.
“These issues should be studied collectively, including with the involvement of the BRICS Center for Competition Law and Policy, which has been our trusted partner for many years, and with the help of the Center’s experts, we could prepare a third report on the state of competition in digital markets, taking into account the development of AI technologies,”
the Deputy Head of FAS concluded.
