Last week, I had the privilege to attend the ninth Brics International Competition Conference in Cape Town, hosted by the Competition Commission.
Themed “Competition Law in Uncertain Times”, the biennial event discussed, among other topical issues, growing digital markets and the increasing prominence of artificial intelligence (AI). Together with our counterparts from China and Brazil, we unpacked the role of competition regulation in a new era of digital dominance while discussing the risks of non-regulation.
These uncertain times call for the world’s competition authorities to get competition regulation on AI right. If they don’t get it right, the actions of competition authorities may inhibit the effectiveness of AI, or leading firms in AI may attain unassailable market power. However, if competition authorities get it right, there is potential to increase productivity, unlock new possibilities in markets and foster inclusion and innovation. Competition authorities that get the regulation of AI right will simplify things and make lives better.
AI is no longer a niche input. It is becoming the indispensable infrastructure for the functioning of markets, and markets are transforming at a rapid pace. Some markets may disappear, others will expand and new ones will emerge. To ensure inclusion in the markets, there’s a need for investment in enabling AI infrastructure, particularly electricity, high-speed internet connectivity, computing power, servers and data centres.
The challenges facing emerging markets such as South Africa include access to data and AI infrastructure
How profitable are AI markets estimated to become? According to the 2025 UNCTAD Technology and Innovation Report, the market value of AI is expected to reach $4.8-trillion (R83.3-trillion) by 2033, or a projected 25-fold increase. The market is, however, highly concentrated at a global level with, as the UNCTAD report showed, the concentration of economic activity predominantly in the US and China.
The opportunity presented by AI for economies should not be underestimated. South Africa, like many other economies, is at an advanced stage of developing a policy framework on AI. The framework will focus on the impact of AI in the economy and effective measures to harness AI, building on the Presidential 2020 report on the Fourth Industrial Revolution. This is also the year South Africa is leading the G20, and there is a specific committee on AI at the level of the G20 that will make recommendations to the summit in Johannesburg later this year.
Under Brazil’s 2025 presidency, Brics leaders issued a leaders’ declaration and leaders’ statement on the global governance of AI, elevating access, inclusion and the needs of the Global South. The declaration is focused on solutions at a multilateral level, inclusive governance and caution against extractive and exploitative approaches. The principles dovetail with competition regulators’ mandate in opening markets for AI inputs and services. At the last meeting of the Brics working group for the research of competition issues in digital markets in Moscow, delegates homed in on AI’s implications for competition, market power in access to chips and cloud, data access and the risks of vertical integration.
South Africa’s delegation presented a perspective on how AI may amplify the gatekeeping seen in core digital platforms and cloud markets, and how ex-ante tools or proactive approaches and policy measures can complement case work. Since its last meeting, the working group, co-ordinated by the Brics Competition Law and Policy Centre, has continued its tasks and is considering some of the outcomes of the Brics digital markets working group.
Other competition authorities around the world are testing new theories and tools around AI. Yet there are concerns about the use of algorithmic pricing and sensitive data exchanges, algorithmic collusion, approach to generative AI and broader effects on markets. The challenges facing emerging markets such as South Africa include access to data and AI infrastructure.
This creates high barriers to entry and expansion, and we need to further develop local capabilities in this regard among Brics nations. For Brics economies, especially, main risks to competition presented by advances in AI as identified in other jurisdictions range from access to chips and cloud; access to data, vertical integration risks, standard-setting and interoperability.
How can Brics nations get competition regulation on AI right? Building on the latest discussions in the working group, these considerations and proposed actions offer a strong starting point: measures to reduce barriers to entry in AI markets; effective remedy design; joint monitoring of application programming interfaces and possible cloud discrimination; measures to enhance interoperability; and co-operation on investigations.
AI will not wait for Brics nations to perfect statutes or regulatory approaches. However, with evidence-based approaches, demonstrable policy leadership and deeper cross-border co-operation, Brics competition authorities can ensure they develop a coherent, proactive response to the unique challenges that come with AI.
• Ratshisusu is deputy commissioner of the Competition Commission
TimesLIVE
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