Various concerns have been raised regarding the effect of AI and dominant AI companies on the functioning of free markets.

Firstly, algorithms have the potential to assist competitors in carrying out explicit collusions, such as through the use of pricing algorithms that reflect one another's actions. This form of collusion is generally anticipated to be governed by existing competition regulations.

Secondly, scholars argue that “attention must be paid to the question of whether and to what extent an undertaking’s AI-related data(base) can lead to a dominant position on the market” especially considering network-effects that create a lock-in for consumers.

Moreover, a possible increase in tacit collusion is anticipated, known as “anti-competitive coordination, which can be achieved without any need for an explicit agreement but which competitors are able to maintain by recognizing their mutual interdependence.” This is due to increased transparency through data availability, which allows competitors to react towards each other in real time and could result in parallel behavior between market participants.

Finally, attention is drawn to the opaqueness of AI decisions, which might influence consumers negatively (e.g., through personalization of prices).