CCI Chief Warns of AI-Powered Collusion and Algorithmic Discrimination in Pricing

With AI, regulators need forward-looking approach: CCI chairperson Ravneet Kaur

New Delhi: The widespread adoption of artificial intelligence (AI) by companies has changed the market dynamics and regulators need to take a forward-looking approach to preserve fair competition, said Competition Commission of India (CCI) chairperson Ravneet Kaur. "We are seeing rapid adoption of AI; it has become a driving force in modern markets and through the use of AI there could also be potential ways of collusion... therefore regulators need to take a forward-looking approach," she said. Speaking at the National Conference on Economics of Competition Law, Kaur said market studies were among the tools that enabled "comprehensive analysis of market structure, the way the business models are operating, the various arrangements among players and potential competition issues". She pointed out that the amendments to the competition law introduced in 2023 aimed to balance enforcement with market friendly regulations. The government had introduced amendments to the law which brought in concepts such as commitment and settlement and a shift from turnover-focused identification of transactions to deal-value focused. "Deal value thresholds have been introduced" to identify transactions in combination, Kaur said. Even after the completion of the investigation by the director general, the amendments incentivise stakeholders to offer settlement through "discount settlements", she said. Highlighting the CCI's performance in 2024, Kaur said the regulator received 42 anti-trust cases and found prima facie violations in eight cases. Over the past 15 years, the CCI has disposed of 1,180 antitrust cases of the 1,300 cases it received. To better tackle a deluge of legal applications in competition law cases, Kaur said, "We are registering interlocutory applications... and all applications are being monitored carefully to ensure there's consistency and efficiency in the process of adjudication."

Some Companies Using AI For Collusion: CCI Chief

The union minister of state for corporate affairs, Harsh Malhotra, also called for real-time monitoring of markets to ensure fair competition. The Competition Commission of India's (CCI) chairperson Ravneet Kaur has raised concerns about companies using AI for price collusion. Kaur, while speaking at the 10th National Conference on Economics of Competition Law, said that companies are deploying AI to coordinate prices without explicit agreements and are engaging in algorithmic discrimination under the guise of dynamic pricing. Kaur noted that predictive algorithms may automate collusive behaviour, raising antitrust concerns, PTI reported. Noting that the competitive landscape is defined by platform economies and algorithm-driven decision-making, the CCI chief said, "The innovation in technology and emergence of new business models are happening at an astronomical pace. At the same time, regulations need to encourage innovation while ensuring that we have a dynamic and proactive approach in balancing innovation with competition." In terms of the inadequacies of the traditional model to address the evolving market complexities, the chairperson said that the CCI aims to adopt forward-looking approaches, including trust-based regulations and algorithmic transparency. In 2024, the CCI handled 42 antitrust cases, with detailed investigations ordered in 8 cases based on prima facie evidence, the chairperson said. In the same year, 128 merger and acquisition proposals were reviewed, of which 126 cases were disposed of. At the same event, the union minister of state for corporate affairs, Harsh Malhotra, called for real-time monitoring of markets to ensure fair competition. Kaur pointed out that the CCI has been actively looking at ways to avoid delays in delivering final orders. She also mentioned the challenges faced in the cases involving Amazon and Flipkart. After receiving the CCI director general's investigation reports, Kaur said cases were filed against Amazon and Flipkart in six different high courts across India. To consolidate these cases and simplify complications arising out of multiplicity of proceedings, the CCI moved the Supreme Court to transfer all the petitions to a single court, the Karnataka High Court. This comes at a time when the CCI is looking to crack down on alleged unfair practices of digital companies and big tech giants. Last year, Kaur flagged concerns over the "opacity of algorithms" and "data dominance" of digital firms. In September last year, the watchdog came out with new rules to tighten its grip on big digital players. In November, the CCI slapped a fine of INR 213.1 Cr on Meta pertaining to WhatsApp's 2021 privacy policy case. Besides, it is also probing Apple in an antitrust case.

CCI Raids GroupM, Publicis, Dentsu Over Price Collusion Probe

Disclaimer: This content generated by AI & may have errors or hallucinations. Edit before use. Read our Terms of use The Competition Commission of India (CCI) has conducted raids on the offices of several major advertising firms, including GroupM, Publicis, Dentsu, and Interpublic Group, over allegations of price collusion. MediaNama has independently confirmed this. Price collusion is an illegal practice where competing companies secretly agree to fix, raise, lower, or stabilize prices instead of allowing market competition to determine them. This can lead to artificially high prices, reduced competition, and harm to consumers. Competition Commission of India officials searched approximately 10 locations after launching a case against the agencies for allegedly fixing ad rates and discounts. During these surprise raids, which can last several days, CCI officials typically collect documents and record statements from company executives. The investigation is expected to proceed further, with the process remaining confidential. We have reached out to the companies for a comment. We will update the copy as and when we receive a response from them. CCI Chief Warns of AI-powered Collusion At a recent event, CCI Chief Ravneet Kaur also stated that Artificial Intelligence (AI) could facilitate collusion, including algorithmic discrimination disguised as dynamic pricing. Kaur acknowledged that AI is now a key market force, influencing pricing strategies, decision-making, and operational efficiency. However, she cautioned that predictive algorithms could foster collusive behaviour. She described these emerging forms of collusion as "cartels without human communication, price coordination without explicit agreements", alongside concerns about algorithmic discrimination. She further stressed that traditional regulatory models are insufficient to address the complexities of the rapidly evolving market. "Today's competitive landscape is defined by platform economies, network effects, and algorithm-driven decision-making," Kaur observed, adding that market power now hinges on data control, network effects, and platform reach. Read More:

AI and Algorithmic Pricing: CCI Warns of Collusion Risks

Disclaimer: This content generated by AI & may have errors or hallucinations. Edit before use. Read our Terms of use 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. 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. 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.