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Quick Guideline on Artificial Intelligence and Competition Law

Writer's picture: ILLIA PROKOPIEVILLIA PROKOPIEV

We're seeing some amazing AI-powered tools that are changing how industries work. Think of AI as the brain behind smarter business tasks, better insights, and a closer connection with customers. The EU has introduced rules (the AI Act and AI Liability Directive) to ensure AI plays fairly and safely. Also, big organizations are looking closer at how AI might affect fair competition in the market. Here is a quick overview.


1. Key Elements of AI Systems


Information Gathering (Data):

  • It is the backbone of AI's learning ability.

  • Firms with expansive data have a leg up in crafting AI solutions.

  • Regulations aim to keep the playing field open for emerging AI innovations.

  • Gathering data? Make sure to follow competition and privacy rules.

Tech Power (Computational Resources):

  • It is the engine that drives AI systems.

  • A limited supply of essential tech pieces like server chips is a challenge.

  • AI creators are on the lookout for new solutions and upgrades.

Storing Data (Cloud Computing):

  • There's growing concern about easy access to the cloud.

  • The EU is drafting rules to ensure cloud services are fair and transparent.

Talent Hunt (Labor Market):

  • There's a race to find the brightest tech minds.

  • Watch out! Some contracts can restrict where talent can go next.

2. Crafting AI (AI Development Process)

  • Many are using shared resources or "open-source" tools.

  • However, there are worries about the "start open, end closed" approach.

  • Setting industry standards? They need to be competition-friendly.

  • Regulators will keep a close eye on how AI guidelines and best practices evolve.

3. AI and Collusive Conduct

  • Algorithmic pricing tools are not new.

  • Collusion via algorithms can be caught under competition law.

  • AI determining and executing agendas present regulatory challenges.

  • Distinguishing between AI-driven behavior and collusion is crucial.

  • Establishing liability for AI actions is complex.

4. AI and Abusive Conduct

  • Dominant firms may use AI for anti-competitive strategies.

  • AI's use in consumer data collection and personalized pricing is under scrutiny.

  • Non-discriminatory behavior and close oversight are expected of dominant firms using AI.

5. AI and Merger Control

  • Regulators are wary of potential "killer acquisitions."

  • Jurisdictional questions arise for mergers involving nascent technologies.

3. AI and Competition Law Detection and Enforcement

  • AI tools can aid in competition compliance and monitoring.

  • Authorities are recruiting data scientists and software engineers.

  • AI-driven detection and enforcement tools are on the rise.

  • The concept of predicting market failures raises ethical and procedural concerns.

Conclusion


The intersection of AI and competition law presents both challenges and opportunities. While AI can potentially enhance industries, its misuse can lead to anticompetitive behavior. It is imperative for firms and regulatory authorities to strike a balance between harnessing AI's capabilities and ensuring a fair competitive landscape.


The information provided is not legal, tax, investment, or accounting advice and should not be used as such. It is for discussion purposes only. Seek guidance from your own legal counsel and advisors on any matters. The views presented are those of the author and not any other individual or organization. Some parts of the text may be automatically generated. The author of this material makes no guarantees or warranties about the accuracy or completeness of the information.



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