Competition regulators must stay ahead of the curve in the artificial intelligence (AI) era to tackle algorithmic collusion, identify hidden anti-competitive behavior, and protect consumers in increasingly AI-driven markets, said Competition Commission of India (CCI) Chairperson Ravneet Kaur.

Speaking at the 10th National Conference on Economics of Competition Law in the capital, Kaur emphasized that AI is no longer theoretical but a dominant force shaping modern markets. “AI is influencing pricing strategies, decision-making, and operational efficiencies across industries,” she said, adding that while AI brings efficiency and innovation, it also introduces new risks that require proactive regulatory intervention.

The Growing Challenge of AI-Enabled Collusion

According to Kaur, AI has enabled new forms of market distortions, including:

Cartels without human communication: Algorithms can independently adjust prices based on market signals, mimicking cartel-like behavior without explicit coordination among firms.
Price coordination without agreements: AI-driven pricing models can lead to synchronized price increases without traditional collusion.
Algorithmic discrimination under dynamic pricing: AI can set different prices for consumers based on their personal data, sometimes leading to unfair or discriminatory pricing.

Kaur warned that many of these issues are not necessarily new but are harder to detect due to the opacity of AI decision-making. “Regulators must strengthen their capabilities to identify and address these emerging threats before they become entrenched,” Kaur asserted.

From Reactive to Proactive Regulation

Kaur highlighted the need for regulators to move from reactive enforcement—where action is taken after violations occur—to proactive regulation, which focuses on anticipating market distortions before they escalate into systemic failures.

She outlined a three-pronged approach for modern competition regulation: Real-time, data-driven market intelligence: Regulators must embrace AI and data analytics to detect competition issues early; Anticipating risks through market studies:

In-depth studies can provide an evidence-based understanding of market dynamics, identifying anti-competitive trends before they become widespread and finally a collaborative regulatory strategy where Traditional enforcement models must evolve to include greater engagement with businesses, policymakers, and academics to build a more resilient competition framework.

Market Studies as a Critical Tool

Kaur stressed the importance of market studies in competition enforcement, stating that they serve as an early warning system. These studies help regulators analyze market structures, business models, and potential anti-competitive arrangements.

“By identifying emerging risks early, we can intervene before problems escalate, ensuring markets remain competitive and fair for consumers,” Kaur said.

Anti-Trust Enforcement

Kaur provided an update on CCI’s enforcement record, noting that the Commission has handled cases across diverse sectors such as real estate, automobiles, financial services, pharmaceuticals, entertainment, IT, petroleum, aviation, power, and steel.

Since the Competition Act, 2002, came into effect, CCI has received over 1,300 anti-trust cases, with a 90 percent disposal rate (1,180 cases resolved). In 2024 alone, 42 new anti-trust cases were filed. Among them, a prima facie violation was found in 8 cases, leading to full investigations.

A landmark order was issued in the WhatsApp-Meta case, where data-sharing practices were found to constitute abuse of dominance. CCI imposed corrective measures and penalties to protect competition in the digital ecosystem.

To expedite the ongoing Amazon-Flipkart inquiry, CCI approached the Supreme Court to consolidate multiple High Court petitions challenging the investigation. The cases were transferred to the Karnataka High Court.

New regulations have been introduced to streamline anti-trust filings, ensuring faster resolution of disputes and better monitoring of pending applications.

Merger Control

The Commission has also strengthened its role in merger regulation, reviewing transactions across sectors such as financial markets, healthcare, IT, automobiles, power, and food processing.

Since merger control provisions were notified, CCI has reviewed 1,254 cases, disposing of 1,233 (98 percent disposal rate).In 2024, 128 merger cases were filed, with 126 resolved. Two cases were approved with remedies to safeguard competition.

Kaur reiterated CCI’s commitment to fostering fair competition, ensuring market integrity, and enhancing enforcement efficiency.

Way Forward: A Call for Collaborative Regulation

Outlining the future direction of competition regulation, Kaur emphasized the need for a collaborative strategy rather than purely adversarial enforcement.

Talking about Evidence-based regulation, CCI’s actions will be rooted in empirical research, behavioral insights, and real-world market data to ensure transparency and efficiency.

On Encouraging self-regulation, Kaur noted Businesses should view compliance as a competitive advantage, not just an obligation. Internal mechanisms to identify and prevent anti-competitive behavior will be crucial, she added.

On Shared responsibility for market integrity, Kaur noted that Policymakers, businesses, and academics must work together to develop a regulatory framework that meets the challenges of AI-driven markets.