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Indias Competition Commission Warns AI Could Fuel Anti-Competitive Practices in Digital Markets
At a bustling workshop in Goa, Ravneet Kaur, chairperson of the Competition Commission of India (CCI), cautioned that the rapid adoption of artificial intelligence (AI) could accelerate anti‑competitive behaviour in the country’s digital markets. Speaking to law students at the India International University of Legal Education and Research (IIULER), Kaur highlighted how AI could enable self‑preferencing, discriminatory pricing, tying, and market manipulation.
Kaur noted that while AI brings benefits across sectors such as healthcare, education, logistics, and supply‑chain management, it also speeds up the dynamics of digital markets. "Digital markets are something we have been seeing for some time now, but there is something else which is also happening now — AI. What was going at a very fast pace in digital markets has turned like jet speed now because of AI," she said.
The CCI has already begun a detailed, first‑of‑its‑kind study on AI and competition, completed last year. The research identified several ways in which AI could replicate anti‑competitive practices observed in digital markets. One concern is that agentic AI systems could monitor a competitor’s pricing and automatically respond by matching or cutting prices without direct human intervention. "The algorithms are made in such a way that it is something happening on its own," Kaur explained.
Kaur emphasized that the CCI does not intend to intervene immediately whenever a new technology emerges. Instead, the regulator uses market studies to understand emerging issues, especially given India’s large and growing startup ecosystem. "We are okay with enterprises becoming dominant. We have nothing against dominance, against growth. But the abuse of dominance is where the CCI comes down very strictly," she said.
She traced the evolution of India’s competition law from the Monopolies and Restrictive Trade Practices Act of 1969 to the Competition Act of 2002, which replaced the MRTP regime after the 1991 economic reforms. The current framework aims to allow businesses to grow while preventing exclusionary or exploitative practices.
The CCI’s work is organised around three pillars: antitrust enforcement, regulation of mergers and combinations, and competition advocacy. Kaur said the commission’s role is to prevent anti‑competitive practices, promote competition, protect consumer interests and ensure freedom of trade for market participants.
During the event, Kaur urged businesses to adopt competition compliance measures, noting that prevention is better than cure. The CCI Director Rajinder Kumar, members Deepak Anurag and Sweta Kakkad, and Deputy Director K Sultanpuri participated in four technical sessions.
The opening address was delivered by IIULER Vice‑Chancellor Dr R Venkata Rao. The workshop aimed to educate law students on the intersection of technology, economics, public policy, corporate governance and law.
Kaur’s remarks come amid growing global scrutiny of AI’s impact on competition. In the United States, the Federal Trade Commission and the Department of Justice have begun to examine AI‑driven pricing and market‑sharing behaviour. In the European Union, the Digital Markets Act and Digital Services Act seek to curb self‑preferencing and other anti‑competitive practices by large digital platforms.
India’s approach, as articulated by Kaur, is to monitor AI’s influence on market dynamics through research and targeted enforcement rather than blanket regulation. The CCI plans to publish a comprehensive market study report on AI, which will explore how AI is affecting competition across various sectors and identify potential regulatory blind spots.
The commission’s stance reflects a broader trend of balancing innovation with competition safeguards. By focusing on abuse of dominance rather than growth itself, the CCI aims to foster a competitive environment that encourages innovation while protecting consumers and smaller competitors.
As AI adoption accelerates, the CCI’s ongoing research will be crucial in determining whether new regulatory measures are needed to address emerging anti‑competitive risks. The commission’s findings will inform future policy decisions and enforcement actions, ensuring that India’s digital economy remains competitive and fair.
Kaur noted that while AI brings benefits across sectors such as healthcare, education, logistics, and supply‑chain management, it also speeds up the dynamics of digital markets. "Digital markets are something we have been seeing for some time now, but there is something else which is also happening now — AI. What was going at a very fast pace in digital markets has turned like jet speed now because of AI," she said.
The CCI has already begun a detailed, first‑of‑its‑kind study on AI and competition, completed last year. The research identified several ways in which AI could replicate anti‑competitive practices observed in digital markets. One concern is that agentic AI systems could monitor a competitor’s pricing and automatically respond by matching or cutting prices without direct human intervention. "The algorithms are made in such a way that it is something happening on its own," Kaur explained.
Kaur emphasized that the CCI does not intend to intervene immediately whenever a new technology emerges. Instead, the regulator uses market studies to understand emerging issues, especially given India’s large and growing startup ecosystem. "We are okay with enterprises becoming dominant. We have nothing against dominance, against growth. But the abuse of dominance is where the CCI comes down very strictly," she said.
She traced the evolution of India’s competition law from the Monopolies and Restrictive Trade Practices Act of 1969 to the Competition Act of 2002, which replaced the MRTP regime after the 1991 economic reforms. The current framework aims to allow businesses to grow while preventing exclusionary or exploitative practices.
The CCI’s work is organised around three pillars: antitrust enforcement, regulation of mergers and combinations, and competition advocacy. Kaur said the commission’s role is to prevent anti‑competitive practices, promote competition, protect consumer interests and ensure freedom of trade for market participants.
During the event, Kaur urged businesses to adopt competition compliance measures, noting that prevention is better than cure. The CCI Director Rajinder Kumar, members Deepak Anurag and Sweta Kakkad, and Deputy Director K Sultanpuri participated in four technical sessions.
The opening address was delivered by IIULER Vice‑Chancellor Dr R Venkata Rao. The workshop aimed to educate law students on the intersection of technology, economics, public policy, corporate governance and law.
Kaur’s remarks come amid growing global scrutiny of AI’s impact on competition. In the United States, the Federal Trade Commission and the Department of Justice have begun to examine AI‑driven pricing and market‑sharing behaviour. In the European Union, the Digital Markets Act and Digital Services Act seek to curb self‑preferencing and other anti‑competitive practices by large digital platforms.
India’s approach, as articulated by Kaur, is to monitor AI’s influence on market dynamics through research and targeted enforcement rather than blanket regulation. The CCI plans to publish a comprehensive market study report on AI, which will explore how AI is affecting competition across various sectors and identify potential regulatory blind spots.
The commission’s stance reflects a broader trend of balancing innovation with competition safeguards. By focusing on abuse of dominance rather than growth itself, the CCI aims to foster a competitive environment that encourages innovation while protecting consumers and smaller competitors.
As AI adoption accelerates, the CCI’s ongoing research will be crucial in determining whether new regulatory measures are needed to address emerging anti‑competitive risks. The commission’s findings will inform future policy decisions and enforcement actions, ensuring that India’s digital economy remains competitive and fair.
