The Competition Commission of India (CCI) has listed out efforts to equip itself in order to control market dominance through AI systems. This came as part of the Parliamentary Standing Committee on Finance’s report on the evolving role of CCI in the digital economy.
“CCI is being equipped to address the challenges posed by AI systems, balancing their potential to drive innovation with risks like algorithmic collusion, data monopolization, and anti-competitive market dynamics. The proposed DCB (Digital Competition Bill) includes provisions to regulate SSDEs, which could encompass dominant AI platforms,” said the report.
The Committee also questioned the CCI about its plans to regulate agentic AI. For context, agentic AI is a class of AI systems that can solve problems and make decisions with only limited human supervision.
“Agentic AI is an evolving concept. In order to understand the Artificial Intelligence (AI) and competition framework, CCI has outlined a comprehensive scope of work for its study on AI and competition. This study focuses on understanding AI’s transformative impact on markets and its competition implications. The study is at an advanced stage,” responded the Corporate Affairs Ministry.
However, AI agents could end up being outside the mandate of the draft DCB. For context, the bill outlines nine Core Digital Services (CDS) that it focuses on, like web browsers or search engines, with major players who offer these services being subject to greater compliances.
The DCB is similar to the European Union’s (EU) Digital Markets Act (DMA), although there is one major difference: the DMA regulates 10 digital services, instead of the DCB’s nine. Notably, India’s proposed regulation leaves out “virtual assistants”, which would include AI agents capable of drafting emails or scheduling appointments.
The Standing Committee observed the exclusion of these assistants in its recommendations, and noted the need for their inclusion in line with global practices.
Market Study on AI:
The CCI also launched a market study into AI and its impact on competition, with the objectives of:
- Understanding certain key AI systems and markets/ecosystems, including AI stakeholders, essential inputs/resources, value chains, market structures and parameters of competition;
- Understanding emerging and potential competition issues in these markets
- Studying the scope and nature of AI use cases and assessing associated opportunities as well as risks from a competition standpoint;
- Understanding the existing regulatory frameworks governing AI in India and other jurisdictions;
- Reaching out to all relevant stakeholders for a holistic understanding of the issues where AI and competition intersect;
- Understanding trends and patterns of AI, and ascertaining enforcement and advocacy priorities of the CCI.
The study will likely be completed by September 30, with the Committee emphasising that…
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