“Market Study on Artificial Intelligence and Competition”: A study by CCI | Current Affairs | Vision IAS
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“Market Study on Artificial Intelligence and Competition”: A study by CCI

Posted 07 Oct 2025

2 min read

Article Summary

Article Summary

The CCI study highlights AI's rapid global and Indian market growth, competition challenges like algorithmic abuse, data dominance, and AI-driven collusion, and recommends enhanced regulation and international cooperation.

The Competition Commission of India (CCI) has released a study examining AI’s significant impact on India’s market dynamics, competition, and regulatory framework.

Global and Indian AI Market Growth

  • Global: AI market is projected to rise 25-fold from USD 189 billion(2023) to USD 4.8 trillion(2033)(UNCTAD)
  • India: AI market is expected to grow 25–35% annually to reach USD 17–22 billion by 2027 (BCG–NASSCOM)

Primary Competition Issues in the AI Era

  • Algorithmic Unilateral Conduct (Abuse of Dominance): Big firms may use algorithms for self-preferencing, predatory pricing.
    • Moreover, control of vast, high-quality datasets and expensive computational infrastructure by a few large firms entrenches their market power and stifles competition from new entrants.
  • Pricing Practices and Discrimination: AI-driven pricing (such as dynamic, personalized and targeted pricing) leverages advanced analytics to tailor prices based on a consumer's estimated willingness to pay. It may raise concerns about the potential exploitation of vulnerable segments
  • Algorithmic Coordinated Conduct (Collusion): E.g. AI algorithms can independently coordinate pricing, market allocation, or bidding without human agreement through self-learning methods. This will make detection of market collusion tougher. 

Initiatives to be taken by  Competition Commission of India (CCI)

  • Regulatory Capacity Building: Strengthen its technical capabilities and infrastructure, and establish a Think Tank of experts on digital markets and AI.
  • Inter-regulatory Coordination: Promote coordination with other government departments and regulators, potentially through Memoranda of Understanding (MoUs).
  • International Cooperation: Engage with international competition authorities and multilateral platforms like the OECD to align on enforcement strategies.

International Regulatory Approaches

  • United States: Relies on existing antitrust laws and sector-specific regulations.
  • European Union: Has adopted the landmark AI Act, which uses a risk-based approach to regulate AI systems.
  • United Kingdom: Enacted Digital Markets, Competition and Consumers (DMCC) Act 2024, which establishes a regime for firms with "Strategic Market Status" to ensure fair competition.
  • Tags :
  • Competition Commission of India (CCI)
  • AI Market Growth
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