Artificial Intelligence (AI) can be used to give rise to collusion, including algorithmic discrimination that can be introduced under the pretence of dynamic pricing, Competition Commission of India (CCI) chief Ravneet Kaur said at a recent event, as per a report by the Press Trust of India.
Speaking at the 10th National Conference on Economics of Competition Law, Kaur noted that AI is a driving market force at present, affecting market characteristics such as pricing strategies, decision-making, and operational efficiencies. However, she added that predictive algorithms might lead to collusive behavior.
These new forms of collusion could be exemplified as “cartels without human communication, price coordination without explicit agreements”, as well as the algorithmic discrimination issue, she said, according to the report.
Kaur further highlighted that traditional models were not adequate to tackle the complexities of the evolving market, Emphasizing a forward-looking approach and collaborative strategy from a regulatory standpoint.
“Today’s competitive landscape is defined by platform economies, network effects, and algorithm-driven decision-making,” she observed, further noting that market power today is based on controlling data, network effects, and platform reach.
Issues around dynamic and differential pricing
Instances of purportedly discriminatory pricing based on algorithms have risen in recent years in India. Medianama has previously examined users’ allegations of differential pricing on quick commerce apps like Swiggy Instamart, Blinkit, and Zepto, where item prices appeared to vary depending on whether the user accessed the app via Android or iOS.
Subsequent Government actions outside India further substantiate the need for a close regulatory watch in this segment. In October 2024, Australia brought the hammer down on dynamic pricing after a noticeable surge in ticket prices was observed as users tried to book Green Day concert tickets. Even though online ticketing companies defended their stance, saying the artists and their teams set these prices, the regulations focused on a practice called “drip pricing”—where a company gradually adds costs to an item as the user progresses through various stages of purchase before making the final payment.
The Indian Government might just follow suit in this regard sooner than expected, however, with parliamentarians’ recent calls for attention towards tackling differential pricing by cab aggregators.
On March 12, 2025, Lok Sabha MPs Balashowry Vallabhaneni and Ravindra Vasantrao Chavan questioned Union Minister of Consumer Affairs, Food, and Public Distribution Pralhad Joshi about price disparities among cab companies. They sought answers regarding customer complaints about fair prices differing despite identical travel distances from the same pick-up point and whether the government has issued any notices to cab aggregators to establish and display criteria for determining fair fares.
Why it Matters
From differential pricing to deep discounts, complaints from users and retail bodies alike indicate a growing need for regulatory attention in the quick commerce sector. While the CCI, as the regulator under the Corporate Affairs Ministry is tasked with implementing measures to ensure fair competition, carrying out disciplinary actions such as penalising as and when necessary, and keeping an eye on users’ feedback on products and services so as to determine actionable areas, there has not yet been any set of rules/code dedicated to the fast evolving quick commerce scene in India. Whether that will change remains to be seen.
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