CCI Chairperson Advocates For A Balanced Regulatory Approach
In a pivotal address on India's burgeoning digital economy, Competition Commission of India (CCI) Chairperson Ravneet Kaur outlined the CCI's enforcement priorities for digital markets and Artificial Intelligence (AI).
Aligning with the Vision of a ‘Viksit Bharat’ (Developed India)
The Chairperson highlighted the vision of Viksit Bharat for a fast growing Indian economy which is economically resilient, futureproof and with free and contestable markets. She stressed that the mandate of the CCI remains to ensure free and fair markets for all, especially smaller firms and startups who should have the necessary space to operate and compete. The Chairperson reaffirmed that the CCI’s vision is aimed at fostering innovation and preventing market entry barriers that could stifle emerging players.
Enforcement in Digital Markets
The Chairperson emphasized that digital markets need a distinct regulatory approach given their pervasive nature across all sectors such as transport, communications, logistics, and quick delivery services. The CCI has had to adapt its enforcement priorities and efforts due to the rapid change of digital markets. A step in this direction was the report of the Committee on Digital Competition Law (CDCL) which was released in 2024 which also introduced the draft Digital Competition Bill, 2024 (DCB) - India’s proposed ex-ante framework of competition regulation (you can read Axiom5’s primer on the DCB here).
The Chairperson highlighted that the CCI has extensively used ex-post regulation under the Competition Act, 2002 to address challenges posed by digital markets. This includes decisions against companies such as Google and Meta (WhatsApp), imposing remedies and requiring elemental changes to their platforms. The Chairperson also stated that the government is currently reviewing public comments and views on the DCB, alongside consultations with the Ministry of Electronics and Information Technology.
India and the Rise of AI
The Chairperson acknowledged the rapid growth and adoption of AI into business models of enterprises across various sectors and the immense benefits it offers in areas like healthcare, education, and logistics. She emphasised that the CCI acknowledges that it is premature for the CCI to intervene in AI, and that the CCI’s initial focus is to understand the dynamics of the AI ecosystem and the types of applications emerging via the AI market study. The study aims to identify potential hidden risks enabled or facilitated by use of AI such as algorithmic collusion, discriminatory pricing, predatory pricing, or other anti-competitive conduct, which may emerge at later stages. The market study is at an advanced stage, with consultations completed with stakeholders through an implementation partner, and the finalisation is underway.
The Chairperson highlighted three potential issues in the context of AI.
Access to data. Some technology companies have a head start in this race given their size and scale, and their ability to use and access data. She highlighted that ensuring access to data in the context of AI applications will be an important issue in the future.
Infrastructure. The lack of multiple players supplying essential infrastructure such as Graphics Processing Units (GPU).
Accountability for algorithms. Attaching responsibility to natural persons is more difficult with algorithms, as their involvement makes a true “meeting of minds” tough to establish.
The Chairperson's address underscored the CCI’s commitment to fostering free, fair, and contestable markets, while carefully balancing regulatory intervention with innovation. The CCI affirms the crucial role of ex-post measures in addressing anticompetitive conduct in digital markets. The address also revealed the CCI's intent to strengthen its capacity and understanding before regulating nascent markets like AI, underscoring the risks of premature intervention.