#FactCheck-Viral Clip of Delivery Boy Beating Woman Is Scripted, Not a Real Incident

Introduction

According to Statista, the global artificial intelligence software market is forecast to grow by around 126 billion US dollars by 2025. This will include a 270% increase in enterprise adoption over the past four years. The top three verticals in the Al market are BFSI (Banking, Financial Services, and Insurance), Healthcare & Life Sciences, and Retail & e-commerce. These sectors benefit from vast data generation and the critical need for advanced analytics. Al is used for fraud detection, customer service, and risk management in BFSI; diagnostics and personalised treatment plans in healthcare; and retail marketing and inventory management.

The Chairperson of the Competition Commission of India’s Chief, Smt. Ravneet Kaur raised a concern that Artificial Intelligence has the potential to aid cartelisation by automating collusive behaviour through predictive algorithms. She explained that the mere use of algorithms cannot be anti-competitive but in case the algorithms are manipulated, then that is a valid concern about competition in markets.

This blog focuses on how policymakers can balance fostering innovation and ensuring fair competition in an AI-driven economy. 

What is the Risk Created by AI-driven Collusion?

AI uses predictive algorithms, and therefore, they could lead to aiding cartelisation by automating collusive behaviour. AI-driven collusion could be through:

• The use of predictive analytics to coordinate pricing strategies among competitors.
• The lack of human oversight in algorithm-induced decision-making leads to tacit collusion (competitors coordinate their actions without explicitly communicating or agreeing to do so).

AI has been raising antitrust concerns and the most recent example is the partnership between Microsoft and OpenAI, which has raised concerns among other national competition authorities regarding potential competition law issues. While it is expected that the partnership will potentially accelerate innovation, it also raises concerns about potential anticompetitive effects such as market foreclosure or the creation of barriers to entry for competitors and, therefore, has been under consideration in the German and UK courts. The problem here is in detecting and proving whether collusion is taking place. 

The Role of Policy and Regulation

The uncertainties induced by AI regarding its effects on competition create the need for algorithmic transparency and accountability in mitigating the risks of AI-driven collusion. It leads to the need to build and create regulatory frameworks that mandate the disclosure of algorithmic methodologies and establish a set of clear guidelines for the development of AI and its deployment. These frameworks or guidelines should encourage an environment of collaboration between competition watchdogs and AI experts. 

The global best practices and emerging trends in AI regulation already include respect for human rights, sustainability, transparency and strong risk management. The EU AI Act could serve as a model for other jurisdictions, as it outlines measures to ensure accountability and mitigate risks. The key goal is to tailor AI regulations to address perceived risks while incorporating core values such as privacy, non-discrimination, transparency, and security.

Promoting Innovation Without Stifling Competition

Policymakers need to ensure that they balance regulatory measures with innovation scope and that the two priorities do not hinder each other. 

1. Create adaptive and forward-thinking regulatory approaches to keep pace with technological advancements that take place at the pace of development and allow for quick adjustments in response to new AI capabilities and market behaviours.n
2. Competition watchdogs need to recruit domain experts to assess competition amid rapid changes in the technology landscape. Create a multi-stakeholder approach that involves regulators, industry leaders, technologists and academia who can create inclusive and ethical AI policies. 
3. Businesses can be provided incentives such as recognition through certifications, grants or benefits in acknowledgement of adopting ethical AI practices. 
4. Launch studies such as the CCI’s market study to study the impact of AI on competition. This can lead to the creation of a driving force for sustainable growth with technological advancements. 

Conclusion: AI and the Future of Competition

We must promote a multi-stakeholder approach that enhances regulatory oversight, and incentivising ethical AI practices. This is needed to strike a delicate balance that safeguards competition and drives sustainable growth. As AI continues to redefine industries, embracing collaborative, inclusive, and forward-thinking policies will be critical to building an equitable and innovative digital future. 

The lawmakers and policymakers engaged in the drafting of the frameworks need to ensure that they are adaptive to change and foster innovation. It is necessary to note that fair competition and innovation are not mutually exclusive goals, they are complementary to each other. Therefore, a regulatory framework that promotes transparency, accountability, and fairness in AI deployment must be established.

References

• https://www.thehindu.com/sci-tech/technology/ai-has-potential-to-aid-cartelisation-fair-competition-integral-for-sustainable-growth-cci-chief/article69041922.ece 
• https://www.marketsandmarkets.com/Market-Reports/artificial-intelligence-market-74851580.html 
• https://www.ey.com/en_in/insights/ai/how-to-navigate-global-trends-in-artificial-intelligence-regulation#:~:text=Six%20regulatory%20trends%20in%20Artificial%20Intelligence&text=These%20include%20respect%20for%20human,based%20approach%20to%20AI%20regulation. ‍
• https://www.business-standard.com/industry/news/ai-has-potential-to-aid-fair-competition-for-sustainable-growth-cci-chief-124122900221_1.html

Introduction

Targeting airlines and airports, airline hoax threats are fabricated alarms which intend to disrupt normal day-to-day activities and create panic among the public. Security of public settings is of utmost importance, making them a vulnerable target. The consequences of such threats include the financial loss incurred by parties concerned, increased security protocols to be followed immediately after and in preparation, flight delays and diversions, emergency landings and passenger inconvenience and emotional distress. The motivation behind such threats is malicious intent of varying degrees, breaching national security, integrity and safety. However, apart from the government, airline and social media authorities which already have certain measures in place to tackle such issues, the public, through responsible consumption and verified sharing has an equal role in preventing the spread of misinformation and panic regarding the same.

Hoax Airline Threats

The recent spate of bomb hoax threats to Indian airlines has witnessed false reports about threats to (over) 500 flights since 14/10/2024, the majority being traced to posts on social media handles which are either anonymous or unverified. Some recent incidents include a hoax threat on Air India's flights from Delhi to Mumbai via Indore which was posted on X, 30/10/2024 and a flight from Nepal (Kathmandu) to Delhi on November 2nd, 2024.

As per reports by the Indian Express, steps are being taken to address such incidents by tweaking the assessment criteria for threats (regarding bombs) and authorities such as the Bomb Threat Assessment Committees (BTAC) are being selective in categorising them as specific and non-specific. Some other consideration factors include whether a VIP is onboard and whether the threat has been posted from an anonymous account with a similar history. 

CyberPeace Recommendations

1. For Public 

• Question sensational information: The public should scrutinise the information they’re consuming not only to keep themselves safe but also to be responsible to other citizens. Exercise caution before sharing alarming messages, posts and pieces of information
• Recognising credible sources: Rely only on trustworthy, verified sources when sharing information, especially when it comes to topics as serious as airline safety.
• Avoiding Reactionary Sharing: Sharing in a state of panic can contribute to the chaos created upon receiving unverified news, hence,  it is suggested to refrain from reactionary sharing.

2. For the Authorities & Agencies

• After a series of hoax bomb threats, the Government of India has issued an advisory to social media platforms calling for them to make efforts for the removal of such malicious content. Adherence to obligations such as the prompt removal of harmful content or disabling access to such unlawful information has been specified under the IT Rules, 2021. They are also obligated under the Bhartiya Nagarik Suraksha Sanhita 2023 to report certain offences on their platform. The Ministry of Civil Aviation’s action plan consists of plans regarding hoax bomb threats being labelled as a cognisable offence, and attracting a no-flyers list as a penalty, among other things.

These plans also include steps such as :  

• Introduction of other corrective measures that are to be taken against bad actors (similar to having a non-flyers list).
• Introduction of a reporting mechanism which is specific to such threats.
• Focus on promoting awareness, digital literacy and critical thinking, fact-checking resources as well as encouraging the public to report such hoaxes

Conclusion

Preventing the spread of airline threat hoaxes is a collective responsibility which involves public engagement and ownership to strengthen safety measures and build upon the trust in the overall safety ecosystem (here; airline agencies, government authorities and the public). As the government and agencies take measures to prevent such instances, the public should continue to share information only from and on verified and trusted portals. It is encouraged that the public must remain vigilant and responsible while consuming and sharing information. 

References

• https://indianexpress.com/article/business/flight-bomb-threats-assessment-criteria-serious-9646397/
• https://www.wionews.com/world/indian-airline-flight-bound-for-new-delhi-from-nepal-receives-hoax-bomb-threat-amid-rise-in-similar-incidents-772795
• https://www.newindianexpress.com/nation/2024/Oct/26/centre-cautions-social-media-platforms-to-tackle-misinformation-after-hoax-bomb-threat-to-multiple-airlines
• https://economictimes.indiatimes.com/industry/transportation/airlines-/-aviation/amid-rising-hoax-bomb-threats-to-indian-airlines-centre-issues-advisory-to-social-media-companies/articleshow/114624187.cms 

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Introduction

Significantly, in March 2023, the Prevention of Money Laundering Act, 2002's regulations placed Virtual Digital Asset Service Providers functioning located under the purview of the Anti Money Laundering/Counter Financing of Terrorism (AML-CFT) scheme. An important step toward controlling VDA SP operations and guaranteeing adherence to Anti-Money Laundering and Combating the Financing of Terrorism (AML-CFT) regulations.

The significance of AML-CFT procedures

The AML-CFT framework's incorporation of Virtual Digital Asset Service Providers (VDA SPs) is essential for protecting the banking industry from illegal activities including the laundering of funds and counter-financing of terrorist attacks. These regulations become more crucial as the market for digital assets develops and becomes more well-known.

The practice of money laundering is hiding the source of the sum received illegally, thus it's critical to have strict policies in place to track down and stop these kinds of operations. Furthermore, funding for terrorism is a serious danger to international safety, hence stopping the flow of money to terrorist companies is a top concern for global officials.

The goal of policymakers' move to include VDA SPs in the AML-CFT architecture is to set up control and surveillance procedures that will guarantee these organisations' open and honest operations. This involves tracking transactions, flagging questionable activity, and conducting extensive customer investigations. Incorporating such procedures not only reduces the potential for financial crimes but also builds confidence and trust in the electronic asset market.

It is important to see the significance of AML-CFT procedures and the changes in the legal framework to reflect the evolving characteristics of digital currencies. These procedures are essential to preserving the reliability and safety of the wider banking system.

Notifications of Compliance Show Cause

Under Section 13 of the PMLA Act 2002, FIU IND sent adherence Show Cause Notices to nine offshore Virtual Digital Asset Service Providers (VDA SPs) as part of its dedication to upholding compliance with regulations. This affirmative step requires organisations to be scrutinised and attempted to bring them under inspection.

Governmental Response

The Director of FIU IND has addressed the Secretary of the Ministry of Electronics and Information Technology to take further measures due to the disregard of offshore firms. According to the notification, URLs connected to these organisations that operate in India in violation of the PML Act's requirements must be blocked. 

Mandatory Registration for VDA SPs

Virtual Digital Asset Service Providers (both onshore and offshore) who perform a range of operations, including the trading of digital goods for monetary currencies, the distribution of digital currency, and the management or preservation of electronic assets, are now obliged to register with FIU.

Range of Statutory Responsibilities

In accordance with the PML Act, VDA SPs are subject to several requirements, including documentation, disclosure, and other duties. One of their responsibilities is to register with the FIU IND. The primary focus is on guaranteeing that VDA SPs comply with AML-CFT protocols, hence enhancing the general reliability of the banking industry.

Difficulties with Offshore Compliance

There are many obstacles in guaranteeing that offshore organisations comply with Anti Money Laundering/Counter Financing of Terrorism (AML-CFT), chief amongst them being their unwillingness to undergo registration. Some overseas Virtual Digital Asset Service Providers (VDA SPs) have been reluctant to comply with the existing rules and regulations, even though they cater to a significant number of Indian users. There are several reasons for this hesitation, such as worries about heightened monitoring, the expense of compliance, and the apparent complexity of governmental processes. Regulatory organisations have taken steps to close the discrepancy between offshore businesses' real activities and the regulations they must follow. In addition to maintaining the trustworthiness of the economic system, resolving the issues with offshore adherence is essential for promoting confidence and openness in the market for electronic assets.

Conclusion

FIU IND has demonstrated its dedication to creating an effective regulatory framework for Virtual Digital Asset Service Providers through its recent measures. India hopes to fortify its countermeasures against money laundering and safeguard the financial well-being of its users by expanding the AML-CFT legislation to offshore firms. The continuous efforts to restrict the URLs of non-compliant companies show a proactive approach to stopping illicit activity and fostering a safe and law-abiding virtual asset ecosystem. The safety and soundness of the banking sector will be crucially maintained by laws and regulations as the digital world develops.

References

• https://pib.gov.in/PressReleasePage.aspx?PRID=1991372
• https://www.thehindubusinessline.com/books/reviews/business-economy/fiu-ind-issues-compliance-showcause-notices-to-nine-offshore-vda-sps/article67684613.ece
• https://business.outlookindia.com/news/fiu-issues-notice-to-9-offshore-crypto-platforms-writes-to-meity-for-blocking-of-urls