The Potential Impact Of Agentic AI On Competition And Merger Review

As agentic AI becomes capable of carrying out increasingly complex tasks with limited human oversight, competition authorities may need to consider how these technologies could influence competitive interactions and dynamics. In “The Potential Impact of Agentic AI on Competition and Merger Review” for the July issue of Competition Policy International, Directors Cristián Hernández and Gabriella Monahova explore these emerging issues and their implications for the assessment of horizontal mergers. 

Dr. Hernández and Dr. Monahova explain that agentic AI has the potential to both strengthen and weaken competition, depending on how it is adopted and integrated into existing operations and market interactions . While AI agents may reduce transaction costs, improve efficiency, and intensify competition in some markets, they may also raise concerns related to personalization, tacit coordination, and the entrenchment of market power. The article emphasizes that these effects should be assessed on a case-by-case basis. 

The authors conclude that, although the traditional framework for merger review remains applicable, assessments may increasingly require evidence on firms’ AI capabilities and how they are deployed. The article concludes by offering a practical framework for evaluating how emerging AI technologies may shape competition and merger outcomes as agentic AI continues to evolve.

Key Takeaways

• Firms’ and consumers’ use of agentic AI could increase competition through cost reductions and quality enhancements, but it could also raise competitive concerns, such as algorithmic collusion risk.

• The competitive effects of agentic AI will depend on the specific application, including whether adoption and integration occur evenly across firms and consumers or reinforce existing asymmetries. 

• While the traditional framework for horizontal merger review remains applicable, the assessment of competitive effects will require additional evidence on firms’ AI capabilities and how they are deployed.

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