Leniency Programmes Vs Algorithmic Collusion: An Equal Fight?
- IJLLR Journal
- May 1
- 1 min read
Katyayani Shekhar, Student, Amity Law School, Amity University Noida
Sonakshi Varshney, Assistant Professor, Amity Law School, Amity University Noida
ABSTRACT
The arrival of digital technologies has turned upside down the traditional competition law enforcement, challenging the effectiveness of the leniency programs that has since ages have been monitoring cartel behaviour. This paper aims to examine the growth of algorithm collusion where autonomous systems coordinate anti-competitive behaviour without explicit human involvement, and the profound implications it holds for antitrust regulation. Through careful analyses of incidents like Amazon Marketplace and European grocery markets, the learning reveals that traditional leniency frameworks, dependent on human whistleblowers, struggle to address the opacity, speed, and autonomy of algorithm-driven collusion. It analyses global responses, including the European Union’s Digital Markets Act and proposed reforms under India’s Competition Amendment Bill, 2022, highlighting the regulatory gaps and enforcement difficulties posed by algorithmic collusion. A comparative review of EU, US, and Indian competition law models further emphasizes the need for innovation-centric, dynamic regulatory approaches. The study concludes that without proactive reforms—such as algorithm auditing, enhanced transparency requirements, and cross-border cooperation—regulators risk falling behind rapidly evolving digital markets, ultimately undermining consumer welfare and fair competition.
