Speaking at the 10th National Conference on the Economics of Competition Law, Ravneet Kaur, Chairperson of the Competition Commission of India, highlighted that artificial intelligence is a compelling force in modern markets. However, if not used properly, it can lead to collusion, including discrimination under the guise of dynamic pricing.
The Role of Artificial Intelligence in Economics
Ravneet Kaur noted that AI is widely used in shaping pricing strategies, decision-making, and operational efficiencies across industries. However, AI also poses risks. It can facilitate new forms of collusion, such as cartels without human communication, price coordination without explicit agreements, and discrimination disguised as dynamic pricing.
Regulation and Trust in Technology
Kaur emphasized the need for adopting new ways to build trust-based regulations for technology involving AI. This would help mitigate risks and promote more ethical use of AI to enhance economic efficiencies.
Plans for Introducing the Digital Competition Bill
Minister of State for Corporate Affairs Harsh Malhotra, who also attended the event, indicated that the Indian government is not rushing to introduce the Digital Competition Bill. He stressed the importance of conducting a proper study of digital competition laws in other jurisdictions such as the European Union, Japan, and Australia to assess their relevance to the Indian market. “Global players should not dominate Indian players in the digital market, nor should they overshadow smaller players,” he stated.
The conference provided a platform for discussing significant challenges and opportunities in the economy related to the use of AI. It also emphasized the importance of a balanced approach to technology regulation to ensure fair competition.
