Source: Lexpert

The Lexpert article discusses a recent report by Canada’s Competition Bureau warning that AI-driven business practices could lead to anti-competitive behavior and market concentration. Regulators are increasingly concerned that AI-powered algorithms used by dominant tech companies may create unfair advantages that limit competition.

One of the main issues highlighted is algorithmic price-fixing. AI systems used in e-commerce and digital advertising can analyze competitor prices and adjust pricing strategies automatically, potentially leading to cartel-like behavior without direct human coordination.

Another concern is AI-enabled market manipulation. Large companies with access to vast AI datasets may be able to predict market trends more accurately than smaller competitors, raising questions about whether AI-driven insights create an unfair competitive edge.

The report also warns about the impact of AI-powered mergers and acquisitions. Companies with superior AI capabilities could acquire smaller firms to consolidate AI expertise, limiting market diversity and stifling innovation.

Legal experts suggest that antitrust laws may need updates to address AI-specific risks. Traditional competition laws were designed for human decision-making, and regulators are now evaluating how AI-driven strategies fit within existing legal frameworks.

The article concludes with potential regulatory responses, including increased oversight of AI-based pricing models, stricter merger reviews for AI-driven acquisitions, and new transparency requirements for AI algorithms used in competitive markets.