Source: The Economist

The rapid growth of AI technologies is forcing regulators worldwide to rethink competition law frameworks to address new challenges posed by these systems. AI algorithms, particularly in the hands of Big Tech companies, have the potential to distort markets by facilitating price-fixing, reducing consumer choice, and solidifying monopolistic practices. The article explores how regulators in the US, EU, and other jurisdictions are responding to these challenges, proposing stricter antitrust measures and more robust oversight. For instance, the EU’s Digital Markets Act emphasizes monitoring algorithmic transparency and preventing anti-competitive behavior. However, critics warn that overly aggressive regulation could stifle innovation and place smaller companies at a disadvantage. The debate underscores the difficulty of balancing innovation with fair competition in an increasingly AI-dominated economy, with regulators aiming to ensure that AI benefits society without consolidating power in the hands of a few.