Algorithmic Collusion In E-Commerce: Concept Of Agreement And Intent Under Section 3 Of The Competition Act, 2002 - Issues And Challenges

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Shreyaa Patnaik, B.B.A LL.B. (Hons.) Department of Law, CHRIST University, Pune Lavasa, India

ABSTRACT

The rapid proliferation of pricing algorithms and artificial intelligence in India's e-commerce ecosystem has given rise to a phenomenon that existing competition law was not designed to confront: algorithmic collusion. Where competing enterprises deploy sophisticated algorithms that independently converge on supra-competitive price levels without any human communication or explicit understanding, the foundational requirement of an 'agreement' under Section 3 of the Competition Act, 2002 is placed under serious strain. In this paper examines the legal, technological, and institutional dimensions of algorithmic collusion in the Indian context. It critically analyses whether the broad definition of 'agreement' under Section 2(b) of the Act is capacious enough to capture autonomous algorithmic conduct, evaluates the evidentiary and technical challenges faced by the Competition Commission of India (CCI), surveys comparative regulatory developments, and proposes a suite of legislative and regulatory reforms. This study argues that India urgently requires a calibrated regulatory response, one that addresses the harm of algorithmic collusion without stifling the technological innovation that drives digital market efficiency.

Keywords: Algorithmic Collusion, Competition Act 2002, Section 3, Agreement, Intent, E-Commerce, Artificial Intelligence, Competition Commission of India, Antitrust.

597. ALGORITHMIC COLLUSION IN E-COMMERCE- CONCEPT OF AGREEMENT AND INTENT UNDER SECTION 3

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