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ARTICLE · 25 JULY 2025

Regulators Take Careful Approach To AI-driven Market Growth

AZB & Partners
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In the digital economy, data is the fuel that powers innovation and artificial intelligence (AI) is its most potent engine.

IndiaTechnology
Toshit Shandilya
Toshit Shandilya
Shreya Singh
Shreya Singh
Sanjana Arun
Sanjana Arun
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Introduction

In the digital economy, data is the fuel that powers innovation and artificial intelligence (AI) is its most potent engine. As businesses leverage vast data sets to define algorithms and enhance market power, competition regulators worldwide are grappling with how data accumulation affects market dynamics. In India, the evolving regulatory landscape – encompassing the Digital Personal Data Protection Act, 2023 (the DPDP Act), the Competition Act, 2002 (as amended) and proposed ex ante rules for digital markets – raises critical questions about data access, monopolisation and AI-driven market distortions. A competition law lens on data regulation is now essential to ensure that AI-driven economies remain fair, contestable and innovation-friendly. The big question today is whether the current and proposed regulations will drive growth or stifle innovation. We explore this debate in this chapter.

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