AI and Competition in Downstream Markets
Focus: AI as an input across the
economy
Downstream: Ordinary markets using AI
Objective: Identify mechanisms, risks, implications
OECD Global Forum on Competition
Paris, 1 December 2025
Ania Thiemann, Competition Expert, OECD
How AI Can Strengthen Competition
Lower entry barriers and minimum efficient scale
Labour substitution and augmentation
Product differentiation and innovation
Lower costs and productivity gains
Reduced consumer search and switching costs
Limits and Uneven Impact
Adoption varies by sector and size
– Productivity effects are heterogeneous
– Integration costs are substantial
– Risk of an 'AI divide'
Data and Model Access
Data shapes differentiation downstream
Access terms matter more than ownership
Model openness affects contestability
Closed systems raise dependency risks
Competition Concerns
Algorithmic collusion • Unilateral conduct – Ranking bias, self-preferencing and price discrimination • Vertical foreclosure
Attribution of liability
Agentic AI and Takeaways
Autonomous systems
Reshape search and workflows
– Risk of deeper hyperscaler ecosystem dependency or lock-in
• AI may both promote or harm competition, depending on access conditions, market structure and institutional context
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