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The Hungarian Competition Authority (GVH) is investigating the market impact of artificial intelligence (AI). It argues that the explosive growth of the new technology could distort competition in digital sectors and leave consumers more vulnerable, therefore the authority is exploring the risks in advance, Magyar Nemzet reports.
With the rapid development of AI-based devices and their integration into existing digital services, the technology could soon become a dominant part of the daily lives of individuals and businesses and, eventually, even of public administrations. The further development of AI-based technology and its lawful and fair use can bring economic and social benefits, but also entails significant risks, the authority pointed out.
Only the largest technology giants have the extraordinary resources needed for AI-based technology, and this head start could distort market competition in digital sectors in the future,
they wrote.
They also noted that AI-based technology could leave consumers more vulnerable, as there are a number of data collection and advertising practices in the digital space that could be dangerous for consumers.
By using AI, businesses can take the collection and use of consumer data to a new level, as well as the use of ‘dark patterns’ and personalized advertising.
A prominent example of this risk is the operation of chatbots, where consumers are unaware whether the response they receive from AI is based on a credible source or the result of a paid promotion,
the authority warned.
The GVH will pay particular attention to investigating the market behavior of large technology companies and online platforms that affect the interests and position of a significant number of consumers and businesses. In recent years, the GVH has imposed competition remedies on Google and PayPal, among others, and Apple and Booking.com have also paid significant competition fines in Hungary.
The Competition Authority is also currently investigating the behavior of Viber, part of the Rakuten Group, and
in 2023, launched proceedings against Microsoft for possibly failing to adequately inform users about certain features of its search engine with artificial intelligence chat functionality.
The GVH closed its investigation into TikTok at the end of November, in which the authority achieved results with global consequences.
The issue of artificial intelligence is increasingly being raised in proceedings against technology giants, so the market analysis now being launched will also support the Competition Authority’s effective competition enforcement activities, the GVH concluded.
Via Magyar Nemzet, Featured image: Pixabay
