Data, AI And Dominance: CCI's Sweta Kakkad Calls For Evolving Competition Law Framework

The rise of digital platforms and artificial intelligence is fundamentally reshaping how competition law is understood and enforced in India, Ms. Sweta Kakkad, Member of the Competition Commission of India, said while addressing the 2nd Bharat Legal Conclave, emphasising that regulators must move beyond traditional tools to effectively respond to emerging market realities.

Speaking at a session focused on Competition Law, Merger Control and Evolving Landscapes in Technology-Driven Markets, she underscored that the digital economy is increasingly driven by platform-led business models that thrive on network effects and data accumulation, creating new forms of dominance and entry barriers.

Kakkad explained that unlike traditional linear markets, digital platforms operate on indirect network effects, where the value for one group of users increases as more users join another side of the platform.

Highlighting the need for a shift in regulatory lens, she said that assessing competition harm in digital markets requires looking beyond price-based indicators. “We must focus on non-price parameters such as user choice, switching barriers, and platform rules that may function as price substitutes,” she said, pointing out that biased rankings, restrictive defaults, and access conditions can effectively distort competition even in zero-price markets.

She further cautioned that dominant platforms often rely on strategies such as self-preferencing, bundling, and default settings to maintain their position, practices collectively referred to as distribution foreclosure.

Turning to artificial intelligence, Kakkad noted that the rapid expansion of AI technologies has added new layers of complexity to competition law enforcement. Referring to the CCI’s 2025 market study on AI, she explained that the AI ecosystem comprises multiple layers including data, computing infrastructure, foundational models, and applications, each presenting unique competition risks. These include concentration of market power, algorithmic collusion, price discrimination, and opacity in algorithmic decision-making. “Control of a few large firms across the AI stack may create significant entry barriers for smaller players,” she observed.

To address these concerns, she highlighted the Commission’s proposed self-audit framework as a proactive compliance tool. The framework, she said, encourages enterprises to internally assess risks related to data concentration, algorithmic bias, and self-preferencing before they crystallise into violations. “It is designed as a preventive mechanism that emphasises transparency, accountability, and internal documentation,” she added.

On merger regulation, Kakkad pointed out that traditional thresholds based on assets and turnover are increasingly inadequate in capturing the competitive significance of digital transactions. She drew attention to the growing global concern around “killer acquisitions,” where large firms acquire innovative startups to eliminate future competition. At the same time, she acknowledged that such acquisitions can also accelerate technological development, making regulatory assessment more nuanced.

In response to these challenges, India has introduced a deal value threshold for merger scrutiny. “Transactions exceeding Rs 2,000 crore with substantial business operations in India will now be examined, ensuring that significant digital deals do not escape regulatory oversight,” she said. She added that factors such as data value, network effects, and innovation potential are becoming central to merger analysis.

Kakkad also stressed the importance of effective remedies in competition enforcement, noting that both behavioural and structural interventions have their place. While behavioural remedies such as non-discrimination and access obligations are quicker to implement, they require continuous monitoring and may be circumvented. Structural remedies, including divestitures or functional separation, are more robust but harder to execute. “Remedy design must be proportionate, targeted, and capable of restoring contestability,” she said.

Concluding her address, Kakkad emphasised that regulation alone cannot foster a culture of compliance. She called upon industry bodies to promote self-regulation and responsible business practices. “Compliance should be seen not as a burden but as a strategic asset that enhances trust and reduces risk,” she said, urging businesses to view regulators as partners in building transparent and resilient markets.

Event Name: 2nd Bharat Legal Conclave

Event Date: March 17, 2026