Artificial Intelligence And Competition Law: Can Algorithms Collude Without Human Intent?
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The increasing use of artificial intelligence in business decision-making has raised concerns about algorithmic collusion, where algorithms used by competing firms lead to coordination of market outcomes without human intent. Indian competition law faces challenges in addressing this issue, as traditional laws are based on the idea of a 'meeting of minds' between firms, which may not apply to algorithmic systems.
The growth of digital markets and use of artificial intelligence in business has transformed how firms compete. Algorithms drive pricing, product recommendations, and advertising, raising concerns about algorithmic collusion. This occurs when algorithms lead to coordination of market outcomes, such as higher prices or reduced output, without human agreement. There are different forms of algorithmic coordination, including monitoring algorithms and self-learning algorithms. Indian competition law prohibits agreements that cause adverse effects on competition, but the existing framework does not expressly mention algorithms or artificial intelligence. The law may need to evolve to address the challenges posed by algorithmic collusion.
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