The IUP Journal of Law Review
An Adverse Effect of Technological Advancement and the Role of Competition Act

Article Details
Pub. Date : Apr, 2020
Product Name : The IUP Law Review
Product Type : Article
Product Code : IUPLR20420
Author Name : Maturu Sai Venkatesh
Availability : YES
Subject/Domain : Law
Download Format : PDF Format
No. of Pages : 12

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Abstract

With the evolution of technology, the access to information became easy and reached new heights. Presently, technological developments in the field of Artificial Intelligence (AI) have added new difficulties such as AI-powered algorithms. On the other hand, the main aim of competition law is to ensure free competition by prohibiting the trade practice that causes appreciable adverse effect on competition in the Indian market and also to protect the interest of consumer welfare. Hence, this paper discusses how the technological advancement, "artificial intelligence and algorithms", is causing appreciable adverse effect in the market and the potential competitive risks associated with the use of these AI algorithms; elaborates on the concept of algorithm along with the types and fields of application, and focuses on algorithmic collusion,1 i.e., how the competitors use this as a tool for anti-competitive agreements, the risks faced by the consumers because of AI-powered pricing (Dynamic Pricing) and the use of artificial networks to detect anti-competitive pricing patterns. Finally, the paper ends with conclusion and necessary suggestions.


Description

The analysis of competition trends at all times requires an assessment of market powers. To assess and understand the same, economic concepts play a major role.1 The evolution of competition law followed by major changes in political thinking and law reform has contributed to the central concerns of companies. The development of business at international levels, coupled with rapid technological advancements, has unleashed powerful economic forces which affect individuals and the society. The Competition Commission of India (CCI) acts as a regulator to prevent superior market forces from having an adverse effect on competition and protects the interests of the consumer.2 Superior market resources are contributing factors which may have appreciable adverse effect3 on the balance, thus attracting the attention of the Competition Act. Such economies of scale are indicators of significant power which may eventually lead to dominance. CCI keeps a check on all such activities as one of the major objectives of the act is economic equity rather than economic efficiency.4Artificial Intelligence (AI) is not a new concept in the present technological advancement. In recent times, however, it has developed largely. At present, technology is growing rapidly, with computers and robots replacing simple human activities. AI is a set of programs designed specifically to imitate the human brain.2 An artificial intelligent machine possesses the intelligence of humans to perform a certain specified task.3

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