Artificial intelligence and competition law in india: A legal response to algorithmic market collusions

Abstract

This article underscores the urgent need for a robust and contemporary legal framework to regulate Artificial Intelligence (AI) in India, particularly through the lens of Competition Law. With AI transforming key sectors like healthcare, finance, and digital services, new challenges are emerging—such as algorithmic collusion, self-preferencing by dominant digital platforms, exploitation of personal data, and the marginalization of smaller market players.

The article critically assesses whether the existing provisions under the Competition Act, 2002 are sufficient to address these AI-driven concerns. It delves into pivotal cases such as Samir Agarwal v. CCI and the Airline Tariff case, which demonstrate the complexities involved in detecting and proving algorithmic collusion. Additionally, the piece explores India’s disjointed regulatory landscape, where AI is addressed in fragmented silos—spanning data protection, cyber laws, intellectual property, and sector-specific regulations. The inefficiencies caused by overlapping and missing regulatory elements are brought to light. The article also highlights India’s shift from an ex-post to a more proactive ex-ante regulatory approach, exemplified by the proposed Draft Digital Competition Bill based on the recommendations of the Committee on Digital Competition Law (CDCL). By drawing comparative insights from regulatory models in the European Union, United States, and China, the article contextualizes India’s regulatory journey on a global scale.

Key policy suggestions include formulating AI-specific competition guidelines, mandating algorithmic transparency, enhancing data-sharing frameworks, and strengthening institutional capacity within the Competition Commission of India (CCI). Ultimately, the article poses a critical question: Can India strike the right balance between regulating AI to ensure fair competition and fostering innovation in a rapidly evolving digital economy?