4. Can the Digital Data Protection Act Bridge the Gap Between Privacy and Competition Law in the Age of Artificial Intelligence? Exploring the Confluence of Regulatory Domains Amidst Data Harvesting

This chapter delves into the critical relationship between data privacy and competition law in the era of artificial intelligence and massive data collection. It argues that a combined regulatory approach is necessary to defend consumer interests and improve market efficiency, criticizing the current Indian legal framework for its oversimplified approach. The chapter proposes a two-fold strategy to address anti-competitive data collection and mergers, including mandatory data sharing among large tech companies. It also explores the implications of AI on these regulatory domains, highlighting the need for a comprehensive legal structure that addresses the challenges posed by AI. The chapter discusses the second-best theorem and its relevance to digital markets, emphasizing the importance of considering interdependencies in complex systems. It also examines the role of data privacy in non-price competition and the potential for data protection to act as an 'internal constraint' on competition law. The chapter concludes by stressing the need for a balanced approach that integrates data privacy and competition law to address the challenges posed by AI and data harvesting.