CCI on Algorithmic Collusion Prevention

New Delhi, Dec 12 (PTI) Companies should carry out self-audits of their systems to prevent algorithmic collusion and ensure algorithmic accountability, a senior CCI official said on Friday.

With growing digital markets and digitisation of systems, algorithms are becoming a key factor and the Competition Commission of India (CCI) has been enhancing its scrutiny of possible unfair business practices in the digital space.

"The whole magic of competition may turn out to be a curse if market players start colluding. cartelising, and abusing their market power or dominance," CCI Director K D Singh said.

Emphasising the need for algorithmic accountability, he also said Artificial Intelligence (AI) can be pro-competitive and also potentially anti-competitive.


A recent study by CCI identified four kinds of algorithmic collusions -- monitoring algorithms, parallel pricing algorithms, signalling algorithms, and self-learning algorithms.

According to Singh, enterprises must understand that compliance cannot be an afterthought and it must be an in-built architecture.

"That is why the CCI study recommends self-audits of AI systems for competition compliance, promoting a culture where responsible autonomy is not just a phrase but a practise," he noted.

In October, CCI released the study titled 'Market Study on Artificial Intelligence and Competition'.

Singh also said decisions on approvals for mergers and acquisitions are being completed by the regulator in 16-18 working days while the statutory time frame for such decisions is 150 days.