Consumer Harm in the AI Era: Ethical and Antitrust Implications of AI-Facilitated Collusion on Online Marketplaces”

Abstract

The digital economy is undergoing a profound transformation due to the rapid integration of artificial intelligence (AI) into online marketplaces. While AI promises unprecedented efficiencies, personalization, and innovation, it also brings novel risks especially concerning consumer welfare and competition. In India, where online commerce has grown dramatically and AI adoption is accelerating, the intersection of antitrust regulation, consumer protection, and algorithmic governance demands rigorous analysis. This paper explores how AI-facilitated collusion on digital platforms can harm consumers, evaluates India’s current regulatory posture, compares it with global responses, and proposes policy and enforcement strategies to mitigate risk without stifling innovation.