The rise of AI-powered digital cartels is like discovering a new species in the wild world of competition law — one that operates not in smoky back rooms, but inside lines of code and autonomous algorithms. The recent discussions at the BRICS conference highlight a crucial inflection point: traditional antitrust tools and mindsets just aren’t cut out for policing algorithmic coordination that can market-synchronize prices without human handshake deals.
Consider the RealPage case in the U.S., where software that adjusts rental prices en masse triggered cartel-like settlements. Here, algorithms essentially did the colluding, leaving regulators to chase ghostly “intent.” This underlines a paradigm shift — from punishing explicit conspiracies to decoding the emergent behavior of independent algorithms that end up marching in lockstep.
But it’s not all doom and gloom. This challenge nudges us toward innovation in regulation itself. Transparency mandates for algorithmic design, real-time market monitoring, and beefing up tech-savvy antitrust enforcers could level the playing field. Furthermore, the global, interconnected nature of digital markets demands international cooperation that mirrors the borderless speed and scope of these AI systems.
While AI-driven coordination might become a ‘structural feature’ of modern markets, we shouldn’t passively accept it as the new normal. Instead, let’s embrace this complexity and craft pragmatic solutions that distinguish between harmful collusion and efficiency gains. Regulators face the task of untangling these “black boxes” — a job more akin to code-breaking than courtroom drama.
Ultimately, the future of fair competition may hinge on how well we can keep up with the silent algorithms shaping prices, access, and power across digital marketplaces. It’s a call for a new kind of vigilance: part tech detective, part policy innovator — ensuring AI remains a tool for innovation, not invisible handcuffs on market freedom. Source: Artificial Intelligence (AI)-Driven Cartels Challenge Traditional Antitrust Approaches, Experts Conclude at HSE Conference
