The Competition Commission of South Africa is taking steps to understand the implications of artificial intelligence (AI) on competition in the country. As AI becomes increasingly ingrained in daily routines, the commission recognizes the need to encourage innovation while preventing algorithmic collusion, exclusionary conduct, and excessive market concentration. The commission is working to stay ahead of the curve in understanding AI and its potential impact on South African markets.
The commission has been working on a cartel detection tool for public procurement, which utilizes electronic tender submissions. Developed in collaboration with the Singaporean competition authority, the University of Pretoria, and tender databases from the Western Cape, this tool is an example of the commission's efforts to leverage international best practices and local expertise. The tool is expected to enhance competition law enforcement in the country.
The rise of global technology companies, data privacy and sharing, and algorithm-based pricing are new challenges that competition law enforcement needs to navigate. To address these challenges, the commission has announced the fourth cycle of its multidisciplinary research grant programme. The programme invites universities and researchers to submit proposals relevant to competition law enforcement, including aspects related to AI.
The commission is particularly interested in research on the structure of the infrastructure that AI depends on and its implications for South African firms, public bodies, and local developers. Additionally, the commission seeks research on how the AI value chain shapes competition, entry, and innovation, including access to essential inputs and relationships between firms operating across different layers.
The research grant programme is part of the commission's efforts to inform and enhance competition law enforcement in the country. The deadline for submissions is November 27, and researchers are encouraged to explore various themes, including price transmission of essential goods amid the rising cost of living and electricity market reform.
Siyabulela Makunga, spokesperson for the Competition Commission of SA, emphasized the importance of research in enabling informed decisions. The commission's efforts to engage with researchers and academics aim to ensure that it stays at the top of its game in understanding AI and its impact on competition.
The commission's website (www.compcom.co.za) provides more information on the research grant programme. While AI has become pervasive in daily life, the commission encourages limited use of AI for submissions. The programme offers an opportunity for researchers to contribute to the development of competition law enforcement in South Africa.
Key points
- The Competition Commission of South Africa seeks research proposals on AI's impact on competition law enforcement.
- The commission is developing a cartel detection tool for public procurement using AI.
- The deadline for research grant submissions is November 27.
