Abstract Digital Sovereignty and Global Trade Rules in the AI Era Competition Law, Governance, and Equity Challenges Gireesh and Neethu Gireesh B

Digital Sovereignty and Global Trade Rules in the AI Era: Competition Law, Governance, and Equity Challenges

Gireesh B St. Francis de Sales College (Autonomous), Bengaluru, Karnataka, India Email: gireeshb789@gmail.com

Mob: 8971031817

Neethu Thankachan

St. Francis de Sales College (Autonomous), Bengaluru, Karnataka, India Email: neethu@sfscollege.in

Mob: 7306298301

Abstract

The rapid integration of artificial intelligence (AI) into the global digital economy has intensified tensions between assertions of digital sovereignty and the liberalising imperatives of international trade regimes. States, particularly in the Global South, are increasingly seeking greater control over data flows, algorithmic systems, and digital infrastructures to safeguard public interest, economic security, and technological autonomy. However, existing global trade rules, rooted in principles of market access and non-discrimination, often constrain such regulatory autonomy, creating a significant governance dilemma.

This study critically examines the intersection of digital sovereignty and global trade rules in the AI era, focusing on competition law, governance structures, and distributive equity. It argues that prevailing competition law frameworks are inadequate to address the concentration of market power, data monopolisation, and gatekeeping practices in AI-driven markets dominated by a few transnational technology firms. At the same time, multilateral and bilateral trade obligations limit the policy space available to developing countries for implementing measures such as data localisation, technology transfer, and public-interest regulation of AI.

These tensions are further situated within the broader framework of intellectual property regimes and access to knowledge, demonstrating how current legal arrangements risk reinforcing structural inequalities and widening the digital divide between the Global North and Global South. Adopting an interdisciplinary approach, the study identifies critical gaps in existing regulatory frameworks and underscores the need for more coherent governance mechanisms.

The paper concludes that achieving meaningful global equity in the AI era requires recalibrating the relationship between trade rules, competition law, and intellectual property norms, while expanding policy space for data governance and ensuring equitable access to AI technologies through development-oriented and human rights-based frameworks.

Keywords: Digital sovereignty, Artificial intelligence, Global trade rules, Competition law, Intellectual property