Lok Sabha Question No. 520 (STARRED), answered on 2026-03-30
Subject: Comprehensive Market Study on AI by CCI
Ministry: CORPORATE AFFAIRS
Asked by: Shri Haribhai Patel, Shri Ravindra Shukla Alias Ravi Kishan

## MINISTRY OF CORPORATE AFFAIRS

## GOVERNMENT OF INDIA LOK SABHA

## STARRED QUESTION NO. 520

## ANSWERED ON MONDAY, MARCH 30, 2026/ CHAITRA 09, 1948 (SAKA) COMPREHENSIVE MARKET STUDY ON AI BY CCI QUESTION

*520 Shri Ravindra Shukla Alias Ravi Kishan: Shri Haribhai Patel:

Will the Minister of CORPORATE AFFAIRS

be pleased to state:

- (a)  whether  the  Competition  Commission  of  India  (CCI)  has  successfully completed its comprehensive market study on Artificial Intelligence (AI) and Competition in February 2026;
- (b) if so, the details thereof, including the key findings and recommendations;
- (c) the manner in which the new settlement and commitment framework has reduced pending litigation for antitrust cases during the year 2025-26;
- (d)  the  specific  measures  being  taken  by  the  Government  to  prevent algorithmic collusion through AI-driven pricing systems in the digital market;
- (e) whether the timeline for merger approvals has been successfully reduced from 210 days to 150 days; and
- (f)  if  so,  the  details  of  the  changes  observed  in  the  timeline  of  merger applications  and  approvals  and  the  steps  taken  to  streamline  the  merger approval timelines and reduce litigation backlog in competition cases?

## ANSWER

THE MINISTER OF FINANCE                    (SHRIMATI NIRMALA SITHARAMAN)

AND CORPORATE AFFAIRS

- (a) to (f) A statement is laid on the Table of the House.

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STATEMENT  REFERRED  TO  PARTS  (a)  to  (f)  OF  LOK  SABHA  STARRED QUESTION NO. 520 FOR 30.03.2026 REGARDING COMPREHENSIVE MARKET

STUDY ON AI BY CCI.

- (a) &  (b): The  Competition  Commission  of  India,  ('CCI'/  'Commission') commissioned a  Market  Study  on  'Artificial  Intelligence  and  Competition' which was completed in September, 2025 and report of the study has been released in October 2025. The study inter-alia aimed to understand Artificial

Intelligence (AI) markets and ecosystems, identify emerging and potential competition issues, and review existing and evolving regulatory frameworks governing AI systems.

The Study revealed that the adoption of AI technologies in India is rapidly accelerating  across  various  user  sectors.  AI  is  widely  used  in  Banking Financial  Services  and  Insurance  (BFSI),  healthcare,  retail,  e-commerce, logistics and marketing, with applications including dynamic  pricing, personalized recommendations, demand forecasting and automated decision-making.

The Study finds that AI's impact on competition is multifaceted, as it may have both pro-competitive and anti-competitive implications. AI brings significant benefits in terms of innovation and consumer experience. It also increases  operational  efficiency  of  enterprises  by  enhancing  accuracy, streamlining operations, allowing faster informed decision-making; enables businesses to offer personalised products and services tailored to specific needs through improved consumer insights; acts as a driver of innovation, empowers MSMEs and startups by levelling the playing field.

The deployment of AI may however,  raise competition issues both within the AI industry and user sectors such as, concentration in the AI value chain due to high upfront costs, access to data, giving incumbents a competitive edge and creating barriers to entry; Ecosystem lock-in and switching cost, where a few major ecosystems with locked-in user bases make it difficult for users  to  switch,  leading  to  dependency;  Algorithmic  collusion,  where  AIdriven pricing algorithms align prices over time, potentially resulting in pricefixing-like outcomes and enabling anti-competitive conduct through opaque 'black -box' systems; Self-preferencing, where firms reinforce dominance by controlling  multiple  stages  of  the  AI  value  chain  and  restricting  market access;  and  Price  discrimination,  where  firms  use  consumer  data  to  set personalised prices in real time; Collaborations and partnerships that may have adverse implication for  competition.

The Report has recommended several measures, for promoting development of  competitive, dynamic and innovative AI ecosystem,  such as Implementation of  self-audit of AI systems for competition compliance by enterprises to ensure responsible autonomy while protecting the market from distortion;  Communication  by  enterprises  to  improve  transparency  and reduce information asymmetry; Focused advocacy and capacity building by CCI, Continuation of Government Policy Initiatives to remove entry barriers by providing access  to infrastructure, promotion  of open-source  AI frameworks, access to data by development of data repositories, development of skilled workforce, enhancement of technological capabilities;    Inter-Regulatory  Co-ordination  to  address  interconnected issues comprehensively; International Cooperation for knowledge sharing. (c): The settlement and commitment framework was introduced through The Competition Amendment Act, 2023 and operationalised through the notification of the Competition Commission of India (Settlement) Regulations, 2024 and the Competition Commission of India (Commitment) Regulations, 2024 on 6 th  March 2024. As the above framework is in the initial phase of implementation, hence, its impact on reducing pending litigation is presently limited  and  evolving.  Nevertheless,  it  has  begun  to  offer  an  alternative pathway for timely resolution of cases, with potential to reduce litigation and pendency over time. (d): In order to promote development of a competitive AI ecosystem in India, to  prevent  AI-driven  anti-competitive  practices  and  to  protect  consumer welfare, the market  study  on  'Artificial  Intelligence  and  Competition' proposes  certain  proactive  measures  such  as    self-audit    for  competition compliance  by  businesses  to  identify  and  address  potential  competition concerns; enterprises actively communicate with relevant stakeholders to improve transparency and reduce information asymmetry; focused Advocacy and capacity building by CCI. The introduction of a self-audit framework for enterprises, particularly those with market power or wide consumer reach, will help assess and align their algorithms with competition norms, facilitate early identification and mitigation of risks, including those relating to algorithmic collusion through AI driven pricing systems in the digital market, while maintaining operational efficiency and innovation. applications within the prescribed timelines. The Commission assessed/reviewed  194  cases  during  the  period

(e)&(f): Yes, the same has been implemented with effect from 10 th  September, 2024. The Commission has been successfully assessing/reviewing the merger has i.e.  10.09.2024  (date  of implementation of new timelines for M&A cases) to 24.03.2026. In all these 194  M&A  cases,  the  Commission  took  the  prima  facie  opinion  within  the prescribed timeline  of  30  days.    In  two  (02)  cases  where  the  show-cause notice U/s 29 (1) of the Competition Act, 2002 was issued, the Commission approved the same with modifications within the overall timeline of 150 days.

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