The Competition Commission of India (CCI) has launched a market study to assess the impact of artificial intelligence on competition, efficiency and innovation within key user industries, as outlined in a CCI release.
According to market regulators, the transformative capabilities of AI have great potential to boost competition. However, there are also concerns about potential competition issues arising from its use.
The study is described as a knowledge-building effort by the committee aimed at providing a comprehensive understanding of the evolving competitive dynamics within the AI systems development ecosystem.
The purpose of this study is to gather views from stakeholders and gain a deeper understanding of the evolving landscape of AI and its application in the Indian market. This study aims to investigate the key AI systems and market, including ecosystem, stakeholders, key resources, value chain, market structure, and competitive parameters.
Its objectives include examining the status and application of AI in the Indian market to understand trends and patterns in AI, reviewing existing global and national laws, and enforcing the Commission on Market Applications of AI. and identifying advocacy priorities.
The study has seven key objectives and is expected to inform CCI's strategy to foster innovation and ensure fair competition. We focus on all aspects of competition within AI ecosystems, including generative AI ecosystems, and assess how the application of AI impacts competition, efficiency, and innovation in key user industries.
To gain insight into the scope of AI use cases and their impact on competition, antitrust watchdogs will engage with a variety of stakeholders, including technology companies, investors, startups, industry associations, independent developers, and corporate customers. We plan to cooperate.
The commission is seeking proposals from institutions to conduct this market research, with submissions due by 5pm on June 3, 2024. The pre-qualification criteria is that the agency must have a minimum of five years of experience and an annual turnover of at least Rs 500 crore in each of the three financial years – FY 2020-21, FY 2021-22 and FY 2022-23. is required to be maintained. In addition, the Agency must conduct at least five studies or projects (related to AI, technology policy, competition, or field research for policy purposes) within the past three fiscal years.
Reports suggest that a comprehensive AI regulation or dedicated framework is expected to be enacted after the Lok Sabha elections to address the absence of a specific policy framework governing AI in India. Earlier recommendations from the Ministry of Electronics and Information Technology had asked intermediaries and AI platforms to manage the risks involved and ensure fair model practices without bias towards Indian users.
