Competition Law Aspects of Artificial Intelligence
Abstract
The relationship between artificial intelligence (AI) and competition law is becoming increasingly important in a rapidly evolving technological environment. This paper examines the competitive aspects of the generative artificial intelligence (GenAI) value chain and the potential anti-competitive effects of AI-based pricing algorithms. Regulatory and competition interventions for GenAI should take into account innovation effects while ensuring market competition, avoiding excessive market dominance and antitrust risks. The study highlights that tipping in digital markets and the dominance of BigTech firms raises various competition concerns, such as restrictions on access to inputs, self-preferencing and product bundling. AI-based pricing algorithms may be able to monitor competitors’ pricing and adjust prices, which may help to enforce anticompetitive agreements, and may also facilitate collusion or concerted practices. The study concludes that the competitive assessment of GenAI and AI-based pricing algorithms is complex and requires an appropriate regulatory framework for the future.
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