AI And Antitrust: Striking A Balance Between Innovation And Competition Law For Ensuring Responsible AI Development

Parnika Sharma, B.A, LLB (Hons), Amity Law School, Noida, Amity University, Uttar Pradesh

ABSTRACT:

The rise of computers at the beginning of this century was a significant breakthrough in the field of technology. However, with the introduction of Artificial Intelligence (AI), we have entered a new era driven by AI that has already started to revolutionise everything around us. Although AI is still to make its full impact on our local supermarkets, it has seen significant evolution in the Indian market, leading to transformative changes in the economy, businesses, services, and professionals. It has facilitated growth powered by AI, technological development, improved decision-making, enhanced efficiency, and increased competition.

Businesses that have integrated AI have been able to leverage its capabilities to their advantage by adding value to end-consumer experiences and influencing markets through the use of AI/ML algorithms. However, the conjunction of competition law and AI has revealed technological, legal, and regulatory friction. AI has exhibited the ability to disrupt market competition by eclipsing the competition law. Competition Law authorities have proposed concerns which include the implementation of anti-competitive practices through AI without explicit evidence of anti-competitive agreements or strategies for example practices like collusion, and the emergence of tech giants with AI dominance leading to abuse of dominance, among others. This paper aims to explore the intersection of AI and competition law and examine the potential for AI to influence markets and harm competition through AI facilitated collusion and dominance. Further, the paper will analyse the challenges in detecting anti-competitive behaviour by AI and the difficulties in applying traditional competition law to AI. Finally, the paper proposes solutions to tackle the challenges posed by AI and competition law.

Keywords: Artificial Intelligence (AI), Competition, Competition Law, Market, AI algorithms.