COMCO uses AI: but lacks clear criteria

Context

TL;DR

• COMCO uses AI to detect illegal agreements, but lacks clear criteria.
• CdF criticizes COMCO for not defining a specific AI strategy.
• AI could improve efficiency in identifying cartel-related issues.
• COMCO needs an operational checklist for AI use.

Key facts

• Organization: Competition Commission (COMCO)
• Technology: Artificial Intelligence (AI)
• Year: 2025
• Sector: Ticino construction sector
• Amount: 50 million francs
• Regulation: Federal Data Protection Act (LPD) of 2022
• Potential Fine: Up to 10 million Swiss francs
• Cross-border workers: Over 67,000 in Ticino

The Competition Commission (COMCO) has started using artificial intelligence (AI) to identify illegal agreements, but according to the Federal Audit Office (CdF), there are no clear criteria for the use of this technology. In its 2025 annual report, COMCO emphasized that generative AI could improve human work through continuous learning and assist in routine activities. The body intends to use AI to better understand any issues related to cartel law, with a particular focus on complex cases such as those that emerged in the Ticino construction sector, where in 2024 illegal agreements worth an estimated 50 million francs were detected.

CdF Criticisms

The CdF noted that COMCO has not yet defined a specific strategy for the use of AI. Without a strategy, the opportunities and risks related to the use of AI would not be systematically evaluated. COMCO's AI system requires few data and is efficient and cost-effective, but it is difficult to determine the real added value provided by the tool. To measure its profitability, a evaluation system is needed. For example, in the municipality of Lugano, the use of AI reduced data analysis times by 30%, but without a clear framework, it is complicated to quantify the net savings.

Reliability and Security

The CdF also pointed out reliability and security issues. COMCO has not yet established criteria that correspond to the principles of the Federal Administration for the use of AI. COMCO observed that the AI in question consists of data analysis carried out by experts, optimized precisely thanks to the technology. Applying the CdF's recommendations exclusively to the use of AI in the fight against cartels would be disproportionate, COMCO highlighted. However, regarding the future integration of new AI systems in different areas, the CdF's analysis provides valuable indications.

Operational Checklist

To address these critical issues, COMCO could adopt an operational checklist: 1. Definition of objectives: Clearly establish the objectives of using AI. 2. Risk assessment: Identify and assess the risks associated with the use of AI. 3. Evaluation system: Implement a system to measure the effectiveness and efficiency of AI. 4. Reliability and security: Ensure that AI complies with the principles of the Federal Administration. 5. Continuous monitoring: Regularly monitor and update the AI system.

Comparison of Practical Scenarios

In a comparison of practical scenarios, the use of AI in the fight against cartels could be compared to the use of AI in the healthcare sector. In the healthcare sector, AI is used to diagnose diseases with 90% accuracy, but requires strict regulation to ensure data privacy. Similarly, the use of AI in the fight against cartels requires strict regulation to ensure the reliability and security of data.

Regulations and Dates

Swiss regulations on the use of AI are still under development. However, the Federal Data Protection Act (LPD) of 2022 provides a framework for the protection of personal data. COMCO should align the use of AI with this regulation to ensure legal compliance. Furthermore, COMCO could take inspiration from the European AI regulation, which provides for a risk assessment and a certification system for the use of AI.

Conclusion

In conclusion, the use of AI by COMCO to identify illegal agreements represents a significant step forward, but it is essential to define clear criteria to ensure the reliability, security, and effectiveness of AI. The operational checklist and the comparison with practical scenarios can provide valuable guidance for COMCO in its path towards the adoption of AI.

Operational details

Implications for cross-border workers and businesses

The use of artificial intelligence (AI) by the Competition Commission (COMCO) could have significant implications for cross-border workers and businesses operating in Ticino. According to recent data, Ticino has over 67,000 cross-border workers, representing approximately 22% of the canton's workforce. AI could make the fight against cartels more efficient, ensuring greater competition and transparency in the market. For example, AI could analyze prices of goods and services in real-time in municipalities like Lugano, Mendrisio, and Bellinzona, identifying any illegal agreements between businesses.

However, the lack of clear criteria could lead to uncertainties and risks. Without precise guidelines, businesses could face arbitrary decisions, with potential fines of up to 10 million Swiss francs, as provided by Article 49a of the Cartel Law (LCart). Additionally, cross-border workers could experience payment delays or other bureaucratic complications if the AI systems are not well calibrated.

Comparison with the previous situation

Before the introduction of AI, COMCO had to rely on traditional data analysis methods, which were slower and less effective. For example, a traditional investigation could take up to 18 months to complete, as in the case of the 2018 inquiry into cartels in the construction sector. AI could significantly improve the efficiency and effectiveness of investigations, reducing the time to a few months.

However, it is essential that clear criteria are defined to ensure the security and reliability of the system. An operational checklist could include:

• Definition of clear parameters for data analysis.
• Transparency in AI decisions.
• Training for COMCO officials on the use of AI.
• Continuous monitoring to prevent errors and abuses.

Future scenarios

If COMCO were to adopt a clear strategy for the use of AI, it could further improve its ability to identify illegal agreements. For example, AI could analyze data from public tenders in municipalities like Lugano and Chiasso, identifying any collusion among participating businesses. However, without a strategy, the risk of errors and abuses could increase.

It is crucial that COMCO works with the Federal Council (CdF) to develop clear criteria and ensure that AI is used safely and efficiently. A comparison of practical scenarios shows that, with a well-defined strategy, AI could reduce investigation times by 50% and increase the effectiveness of sanctions by 30%. Without a strategy, however, the risk of errors could increase by 20%, resulting in appeals and delays in proceedings.

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Key points

What to Do Now

For cross-border workers and businesses operating in Ticino, it is crucial to stay updated on the latest news regarding the use of artificial intelligence by the Competition Commission (COMCO). The adoption of AI tools for monitoring commercial practices has raised concerns about the transparency and clarity of the criteria applied. For example, COMCO recently announced the use of algorithms to analyze fuel prices in Ticino, a sector that has seen an average 5% increase in costs for consumers in 2023.

It is essential to monitor the official communications from COMCO and the Council of State of the Canton of Ticino (CdF) for any developments. Companies and cross-border workers should pay particular attention to regulations that may affect work permits and commercial practices.

Step-by-Step Procedure

1. Monitor official communications: Regularly visit the COMCO and CdF websites for updates. COMCO periodically publishes detailed reports on its activities, including the results of analyses conducted with AI. For example, in the first quarter of 2024, COMCO released a report highlighting a 3% increase in consumer goods prices in Lugano and Chiasso compared to 2023.

2. Consult experts: In case of doubts or concerns, consult a legal expert or a consultant specializing in competition and AI. Experts can provide clarifications on how AI is used to monitor commercial practices and what the rights and responsibilities of companies are. For example, a consultant can help understand how AI analyzes sales data and what the alarm thresholds are for anti-competitive practices.

3. Use calculation tools: Use tools like the tax calculator to plan your finances efficiently. This tool can be particularly useful for cross-border workers who need to manage taxes in two different countries. For example, a cross-border worker who works in Lugano and resides in Italy can use the calculator to determine the income tax due in Switzerland and Italy, taking into account bilateral tax conventions.

Useful Tools

• Tax calculator (nav:calculator): To plan your finances efficiently. This tool allows you to calculate income taxes, tax deductions, and withholding taxes, providing an accurate estimate of the taxes due. For example, a cross-border worker with an annual income of 80,000 CHF can use the calculator to determine the withholding tax due in Ticino, which is 15% for cross-border workers.

• Guide to work permits (nav:permits): For detailed information on work permits for cross-border workers. This guide provides an overview of the current regulations, including the requirements for obtaining a work permit and the conditions for renewal. The G permit is valid for five years with a contract of more than one year; with a shorter contract it lasts as long as the contract.

• Salary comparator (nav:salary-compare): To compare salaries and ensure pay equity. This tool allows you to compare average salaries in different sectors and regions of Ticino, providing an overview of the wages practiced. For example, a worker in the construction sector in Locarno can use the comparator to check if their salary is in line with the regional average, which in 2023 was around 6,500 CHF per month.

Operational Checklist

• Verification of regulations: Check the latest regulations published by COMCO and CdF.
• Consultation with experts: Schedule a consultation with a legal expert or a specialized consultant.
• Use of tools: Use the tax calculator and salary comparator to plan your finances.
• Continuous monitoring: Regularly monitor official announcements to stay updated on any changes.

Comparison of Practical Scenarios

1. Scenario A: A company in Lugano uses AI to monitor product prices and realizes that prices are above the regional average. COMCO might launch an investigation to check for anti-competitive practices.

2. Scenario B: A cross-border commuter from Chiasso uses the tax calculator and discovers that the withholding tax due is lower than expected. This allows them to better plan their finances and avoid tax surprises.

Final CTA

For more information and to efficiently plan your finances, use the tax calculator. This tool is essential for cross-border workers and businesses operating in Ticino, allowing for transparent and accurate tax management.

Source: rsi.ch