Results of the CCCS-ESS Essay Competition 2024

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1^st Prize

Ms Cheong Su-Ann & Mr Ian Wong Kai Jing (Rajah & Tann Singapore LLP)

Abstract:

The rapid advancement of Artificial Intelligence (“AI”) tools has sparked profound transformation across industries, generating considerable benefits for consumers and businesses. Yet, in the absence of regulation, these tools could jeopardise market competition by facilitating anti-competitive collusion and abusive conduct such as price discrimination and self-preferencing. As exploiting AI can bring significant profits to businesses, strong demand for AI has led businesses to enter more data-driven mergers to secure essential inputs for AI development (i.e., data and computational resources). Killer acquisitions and restricting access to these key inputs can mean smaller players can no longer compete. To address these concerns, this essay proposes actionable steps for CCCS.

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2^nd Prize

Ms Pang Cheng Kit, Kit (Singapore Management University)

Abstract:

With AI transforming industries, the government must intervene to protect rights and to protect society against market failure. This essay focuses on how competition and consumer protection rules should evolve. The nature of AI and the AI industry calls for a shift in Singapore’s competition policy. On an overarching level, the government should use AI technologies for monitoring markets and analysis in investigations. Next, the government should consider the applicability of existing legal tests for AI. Specifically, regarding the prohibition against an abuse of a dominant position, the understanding of “dominance” must adapt to the rapid rate of AI development and the industry’s heightened focus on data over the sale of products. Finally, regarding the existing policies which apply well to AI, the government must be cognisant of changes in the application of these policies.

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3^rd Prize

Mr Ng Zhong Han (Singapore Management University)

Abstract:

Today’s technological landscape, rapid advancements in Artificial Intelligence (AI) are transforming industries, enhancing efficiency, and creating innovative solutions to complex problems. However, the disruptive nature of AI also presents significant challenges, particularly in consumer protection and competition. This essay examines the implications of AI on these areas within Singapore, highlighting the limitations of current legislation and proposing necessary updates. AI's capacity to exploit cognitive biases through manipulative designs, such as dark patterns, raises concerns about consumer autonomy and the effectiveness of the Consumer Protection (Fair Trading) Act (CPFTA). The essay underscores the inadequacy of existing rules in addressing AI-driven manipulative practices that undermine free consumer choice.

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Merit

Mr Theodore Choy Zhi Yang

Abstract:

The first modern competition law to be enacted in history, the Sherman Antitrust Act, was enacted in 1890. A century and a half since its writing, much of it has remained unchanged, especially in its focus on the concept of “agreements”, and virtually all competition law since then has been built on this concept. John Sherman wrote at a time when artificial intelligence (AI”) did not yet exist, but a century and a half later, we continue to use the very same system, despite AI’s pervasiveness. Scholars now argue that AI, when used in pricing algorithms, have the ability to tacitly collude with competitors in their markets, coordinating prices without ever actually communicating with one another.

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Merit

Mr Chong Ee Hsiun (Supreme Court of Singapore)

Abstract:

I start with the thesis that artificial intelligence (“AI”) is morally neutral. AI’s development should be shaped in a pro-social direction, and there is no inherent conflict between protecting competition and consumers and advancing technology.

I observe that AI can facilitate common existing types of competition and consumer law violations. These are easy cases as such situations can be governed by existing laws. I then tackle the harder issue of new problems created by AI, including the unpredictability of AI collusion due to opacity of machine learning algorithms and the rapid pace of AI advancements. I suggest that regulatory insights can be gleaned from adjacent fields. Useful ideas to consider include the concept of “enterprise risk” and elements from the law on vicarious liability and attribution.

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Merit

Mr Chong Jia Hua Cavan & Mr Lee Hayden (Singapore University of Social Sciences)

Abstract:

Artificial Intelligence (AI) has profoundly transformed various business sectors, exemplified by OpenAI’s ChatGPT, which offers instantaneous virtual assistance. Despite the significant advantages, including automation, enhanced data analytics and decision making, and innovation acceleration, concerns about AI’s sustainability and legal implications have emerged. Notably, the unauthorized use of intellectual property for AI training has raised complex legal issues. The concentration of data amongst technology giants also raises concerns about the monopolisation of the technology. CCCS and the ESS should establish clear guidelines to foster AI development while ensuring fair competition and economic growth. As such, this essay explores AI’s benefits in business, its impact on market dynamics, potential risks of tacit collusion, consumer protection issues, and the need for regulatory measures. To mitigate these issues, proposed recommendations include supporting SMEs in AI adoption, regulating pricing algorithms, enforcing ethical data collection practices, and enhancing consumer awareness and protection.

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SCHOOL

1^st Prize

Mr Gan Wei Wen (Hwa Chong Institution)

Abstract:

The rapid adoption of Artificial Intelligence across industries is transforming business operations and consumer experiences, necessitating a reevaluation of Singapore's competition and consumer protection frameworks. This essay examines the challenges posed by AI, focusing on algorithmic collusion and big data-driven market dominance in competition law, and consumer manipulation and targeting in consumer protection. Existing frameworks, built upon traditional notions of intent, causality and market definition, are ill-equipped to address the unique complexities of AI-driven markets. Algorithmic collusion, facilitated by AI's autonomous decision-making capabilities, challenges the ability to establish intent and attribute liability. Similarly, the vast datasets wielded by tech giants, coupled with AI's predictive power, create barriers to entry and raise concerns about entrenched market power.

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2^nd Prize

Mr Lukas Lim Kai Zhe (Raffles Institution) & Ms Masuda Marsh Amy Felicity (Nanyang Junior College)

Abstract:

Consumer protection and competition rules are imperative in correcting market failures arising from commercial and intra-business relationships. The development of AI engenders unprecedented problems and novel variants of older concerns that challenge the assumptions upon which present consumer protection and competition rules are built. Hence, the evolution of these rules is non-negotiable—the elephant in the room is “How?”. Following our Introduction (Section 1), Section 2, 3, 4 and 5 of this essay further explores this topic.

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3^rd Prize

Mr Brian Lee Ming Feng (NSF) & Ms Gong Yizhen (Dunman High School)

Abstract:

This essay explores the need for competition and consumer protection rules to evolve in the age of rapid and unprecedented AI growth.

Section 1 establishes the context of the novel challenges posed by AI, highlighting an urgency for relevant regulations to be reformed. It emphasises the delicate balancing act required to ensure that these changes, while effectively addressing unorthodox challenges, do not unduly hinder innovation. Topics of algorithmic collusion, merger and acquisition (M&A) activities, self-preferencing and price discrimination are key areas we have identified for further discussion to formulate improved legal frameworks. Section 2 explores how competition rules should evolve to better cope with the demands of the AI age. This includes refinements to better regulate algorithmic collusion and M&A enabled by AI – actions that often go unnoticed because technology has allowed such behaviour to be carried out in subtle and inconspicuous manners.

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Merit

Ms Zhao Yuxuan & Mr Adharsh Venkatakrishnan (Raffles Institution)

Abstract:

AI holds vast potential to reshape our lives, transforming daily experiences and

revolutionising industries. In particular, Singapore stands at the forefront of AI development, with new markets emerging and bringing with them rapidly changing market dynamics. This underscores the need for the CCCS to adapt its policies to align with the shifting landscape. This essay analyses the effectiveness of current CCCS policies in preserving competition and consumer protection, highlighting certain regulatory gaps that may arise and proposing novel solutions. In Section 1, we introduce the context of rapid AI advancement in Singapore and its importance to us as a nation. In Section 2, we examine how AI may lead to potential violations of the 3 prohibitions that CCCS has set out against anti-competitive behaviour.

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Merit

Ms Leow Jiah Shuen Chloe & Mr Tan Wei Ming Noel (Nanyang Junior College)

Abstract:

The use of Artificial Intelligence (AI) has become increasingly normalised in our modern world. This has inadvertently resulted in harm to competition and consumers. Despite its growing use, Singapore’s competition and consumer protection laws have not evolved sufficiently to address the nuances in competition and consumer harm that have surfaced as a result of AI. Regarding consumer harm, we identified how data collection used to facilitate AI algorithms could intrude consumer privacy and AI algorithms used to segregate consumer groups may discriminate against consumers. For competition harm, we observed how AI-driven pricing algorithms could facilitate collusion and online recommendation systems powered by AI could perpetuate abuse of dominance.

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Merit

Ms Ezann Yeap Ke Hui & Mr Caleb Choy Kit Weng (Raffles Institution)

Abstract:

In recent years, technology, particularly artificial intelligence (AI), has been advancing at an ever increasing pace. The rapid advancement of AI poses a myriad of opportunities for businesses, from increasing productivity and efficiency to lowering barriers of entry for newcomers. However, AI is a developing field and many industries are only beginning to adopt the usage of AI. With the increased adoption, many new challenges to market competition and consumer welfare may arise and there is a need to reconsider whether the current Competition and Consumer Protection rules in place are sufficient in preventing anti-competitive behaviour and protecting consumer welfare. This essay examines the dual nature of AI's impact, highlighting its potential to drive efficiencies, reduce costs, and foster innovation, while also presenting significant risks such as algorithmic collusion and the reinforcement of dominant firms' market power.

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