CCI readying measures to prevent anti-competitive practices in AI solutions

Competition Commission of India (CCI) Chairperson Ravneet Kaur said on Monday that the regulator is preparing measures to prevent potential anti-competitive practices in Artificial Intelligence (AI)-related solutions. The news comes at a tiem when the fair trade regulator has already issued a guidance note for companies to conduct self-audits in relation with the use of AI. Several experts have voiced their concerns on the use of AI across critical industries, emphasising the need to introduce regulatory checks and balances to ensure fairness.

The objective of this guidance, said Kaur, is to ensure that the use of AI aligns with fair competition principles. She also said that the regulator has already advised corporates to assess the impact of AI systems on competition both before and after their deployment.

She warned that AI algorithms could potentially enable cartelisation, price fixing or market manipulation.

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This is why, she emphasised, companies should regularly audit their AI-powered tools or related algorithms.

The latest CCI initiative is aimed at ensuring transparency and fair competition across digital and AI-driven markets.

'Amid growing AI influence, regulators should prevent misuse of market power'

Meanwhile, NITI Aayog Member Rajiv Gauba noted that regulators should work to prevent misuse of market power through AI algorithms while providing an option for data portability.

Regulators will also need to consider whether over-regulation could end up stifling innovation, sad Gauba.

The top officials' remarks assume significance as the country's AI market is estimated to grow to $131.31 billion by 2032, expanding at a CAGR of 42.2 per cent, according to the fair trade regulator.

India is in the first group of AI-ready nations, with systematic progress across all five layers of the AI architecture applications, models, chips, infrastructure and energy, according to an official statement.

According to a CCI report published in February, the global market size of AI is estimated to have increased from $103.6 billion in 2020 to $288.8 billion in 2024, while the country's own AI market has expanded from $2.97 billion to $7.63 billion.

The government is actively promoting technological development in the country in line with AI-led transformation.

Its various steps are aimed at ensuring that technology enhances productivity, generates new employment opportunities, and strengthens the nation’s global competitiveness.

AI to be a key driver of digital transformation under 'Viksit Bharat'?

By integrating AI across industries, the country aims to enhance workforce productivity, create new employment opportunities and bridge skill gaps -- an approach expected to empower both high-skilled and entry-level workers while ensuring equitable participation in the evolving digital economy.

The government envisions AI as a key driver of digital transformation under its broader 'Viksit Bharat' (Developed India) vision.

According to the Economic Survey 2025-26, an 'AI Economic Council' is intended to operate to calibrate the pace of AI adoption in the country.

This body must ensure that AI deployment of does not come at the cost of human intelligence.

Here are answers to frequently asked questions (FAQs) on the subject:

What has CCI said regarding AI?

The fair trade regulator's chairperson has said it is preparing measures to prevent potential anti-competitive practices linked to AI-based solutions.

The regulator wants to ensure that the growing use of AI across industries does not undermine fair market competition.

Why is the CCI focusing on AI now?

AI adoption is expanding rapidly across sectors such as finance, e-commerce and digital services.

Regulators fear that algorithms could be misused, making stricter oversight necessary.

What guidance has CCI already issued to firms?

The regulator has issued a guidance note advising companies to conduct self-audits of their AI systems.

Firms have been asked to evaluate how their AI tools or algorithms might affect market competition.

When should companies assess the competition impact of AI systems?

According to CCI Chairperson Ravneet Kaur, companies should assess the impact of AI on competition both before deploying AI systems and after they are operational.

What has NITI Aayog member Rajiv Gauba said about AI regulation?

Rajiv Gauba has said that regulators should prevent misuse of market power through AI algorithms.

They should do this while ensuring data portability, according to Gauba.

How much is the AI market projected to grow?

The country’s AI market is projected to grow to $131.31 billion by 2032, expanding at a 42.2 per cent CAGR, according to CCI.

How large is India’s AI market today?

India’s AI market has grown from $2.97 billion in 2020 to $7.63 billion in 2024.