TACKLING ANTI-COMPETITIVE CHALLENGES IN AGE OF ARTIFICIAL INTELLIGENCE ALGORITHMS IN INDIA: A CRITICAL ANALYSIS OF ANTI-COMPETITIVE CONDUCT BY AI ALGORITHMS UNDER COMPETITION ACT, 2002
AUTHOR – ADITHYA NARAYANA RAO, 3RD YEAR, BA LLB, SCHOOL OF LAW, CHRIST (DEEMED TO BE UNIVERSITY)
BEST CITATION – ADITHYA NARAYANA RAO, TACKLING ANTI-COMPETITIVE CHALLENGES IN AGE OF ARTIFICIAL INTELLIGENCE ALGORITHMS IN INDIA: A CRITICAL ANALYSIS OF ANTI-COMPETITIVE CONDUCT BY AI ALGORITHMS UNDER COMPETITION ACT, 2002, INDIAN JOURNAL OF LEGAL REVIEW (IJLR), 6 (2) OF 2026, PG. 363-375, APIS – 3920 – 0001 & ISSN – 2583-2344.
Abstract:
The swift integration of artificial intelligence (AI) into commercial practices has significantly altered the landscape of competition, with implications for both opportunities and regulation. Through automating decision-making and enhancing market strategy, AI algorithms are contributing to increased efficiencies and innovations across various sectors. However, the introduced complexity of anti-competitive risks including tacit collusion, price manipulation, segmenting markets, and discrimination can outpace the identification and assessment standards of existing laws of competition. This paper discusses and critically assesses the intersection of AI technologies and the Indian Competition Act, 2002[1], emphasizing the regulatory implications of algorithm-driven market behavior. This research presents an organization of the types of artificial intelligence (AI) algorithms that are present in market strategies including algorithms for pricing, recommendations, and demand prediction and an analysis of whether those algorithms are able to have an impact on competition in the market. The research points out how the opacity, speed, and adaptability of these algorithms make traditional investigatory methodologies less effective and calls on regulators to employ sophisticated monitoring techniques and directed decision-making. The research notes comparative analogies from developing competition laws which use an intentional focus on algorithmic behavior and attributes context/rationale to ideas of algorithmic accountability, algorithmic transparency, and information-sharing between regulators to fulfill competition laws.
The study employs a doctrinal research methodology, involving a detailed analysis of statutory provisions, case law, and regulatory guidelines. Additionally, comparative analysis with international jurisdictions is conducted to identify best practices in algorithm-focused competition regulation. The research also categorizes AI algorithms by their operational functions and examines how their design and implementation can influence market dynamics. In conclusion, the study emphasizes that Indian competition law’s development needs to incorporate technology-relevant regulatory frameworks to best advance consumer welfare, in addition to promoting innovation. This study shall strictly focus on Indian digital markets (fintech and e-commerce).
Keywords: Algorithms, Anti-competitive agreements, Abuse of dominance, E-Commerce, Fintech, Competition Commission of India
[1] Competition Act, No. 12 of 2003, Acts of Parliament, 2002