Why do Competition Authorities need Artificial Intelligence?

Abstract

Recent technological developments are transforming the way antitrust is enforced as well as the way market players are infringing competition law. As a result, enforcers are starting to equip themselves with sophisticated digital investigation tools. This paper explores this interest in building an Artificial Intelligence (AI) arsenal for the fight against algorithmic infringements. What are the key factors motivating regulators to develop their own technological tools to enforce competition law? Building on interviews with a number of competition authorities, this paper finds that changes in digital markets, the need for enforcers to reverse-engineer companies’ algorithms in order to better understand their implications for competition law, the need to enhance efficiency and keep pace with the fast evolution of the digital economy, and, finally, the decrease in leniency applications, are all reasons for which competition authorities should strive for more innovative and alternative means to boost their ex officio investigations.