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Algorithmic Collusion In Digital Ad Markets Under The Indian Competition Act




Poovarasan R, Jeya Prathiksha M & Arun Karthick T, SRM Institute of Science and Technology, Kattankulathur


ABSTRACT


India's $5 billion digital advertising market increasingly relies on AI-driven real-time bidding (RTB) auctions dominated by Google (45%) and Meta (25%). These algorithms enable algorithmic collusion tacit coordination sustaining supra-competitive CPMs without explicit human agreements challenging the Competition Act, 2002's Section 3 framework designed for traditional cartels. Ezrachi-Stucke's typology (messenger, hub-spoke, predictable agent, self-learning) reveals escalating evidentiary gaps: black- box opacity eliminates communication trails, RTB transparency facilitates perfect monitoring, and Cement Manufacturers' plus-factors test fails against autonomous machine learning.


Doctrinal analysis synthesizes CCI jurisprudence (Samir Agrawal, Google Ad Tech) demonstrating enforcement collapse against RTB velocity. EU TFEU Article 101 "concerted practices" and DMA ex-ante audits offer superior models versus US Sherman Act's explicit agreement barrier. India's Draft Digital Competition Bill lags implementation.


Research interrogates: Section 3 adequacy, evidentiary burdens, global benchmarks, reform pathways. Hypothesis: Ex-post framework obsolete; ex- ante algorithmic audits essential. Recommendations: Section 3(3)(e) "algorithmic coordination" per se violation, reversed proof burdens, CCI AI Forensic Unit. Absent reforms, unchecked collusion risks SME exclusion and consumer welfare losses, entrenching digital gatekeepers' dominance.


Keywords: Algorithmic collusion, Real-time bidding (RTB), Competition Act, 2002 Section 3, Digital advertising market, Ex-ante algorithmic audits.



Indian Journal of Law and Legal Research

Abbreviation: IJLLR

ISSN: 2582-8878

Website: www.ijllr.com

Accessibility: Open Access

License: Creative Commons 4.0

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All research articles published in The Indian Journal of Law and Legal Research are fully open access. i.e. immediately freely available to read, download and share. Articles are published under the terms of a Creative Commons license which permits use, distribution and reproduction in any medium, provided the original work is properly cited.

 

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The opinions expressed in this publication are those of the authors. They do not purport to reflect the opinions or views of the IJLLR or its members. The designations employed in this publication and the presentation of material therein do not imply the expression of any opinion whatsoever on the part of the IJLLR.

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