1. Introduction

Automated certification systems are digital systems that use algorithms, artificial intelligence, machine learning, databases, sensors, blockchain, or automated decision-making to determine whether a product, service, business, professional, facility, or transaction satisfies specified certification standards.

Examples include automated systems for:

• product safety certification;
• environmental certification;
• organic certification;
• cybersecurity certification;
• financial compliance;
• quality assurance;
• halal certification;
• medical-device certification;
• software-security certification;
• sustainability and ESG certification;
• carbon-credit verification;
• professional accreditation;
• supply-chain certification.

Certification can have substantial competitive significance. A certificate may determine whether a business can participate in a procurement process, access a platform, sell products in a regulated market, obtain financing, or satisfy consumers.

Consequently, an automated certification system can become an economic bottleneck even where it is formally presented as a neutral technical mechanism.

The central competition-law issue is:

When does an automated certification system cease to be merely a technical verification mechanism and become a source of market power capable of excluding competitors?

2. Why Certification Can Affect Competition

Certification creates value because it reduces information asymmetry.

A purchaser may not know whether a supplier:

• meets safety standards;
• satisfies environmental requirements;
• complies with cybersecurity rules;
• maintains appropriate quality;
• uses acceptable production methods.

Certification solves this problem by providing an independent signal.

However, if access to certification is controlled by a dominant organisation, the certification system can become a gatekeeper.

A competitor might effectively need:

certification → market access → customers → scale.

If the certifier controls the first step, it may influence the entire downstream market.

3. Automated Certification Changes the Traditional Problem

Traditional certification normally involves human evaluators.

Automated certification can instead use:

• algorithms;
• machine learning;
• automated scoring;
• continuous monitoring;
• digital identity;
• sensors;
• blockchain records;
• automated audits;
• AI-based risk assessments.

This can increase efficiency but also create new competition risks.

For example, an automated certification platform could:

1. determine eligibility;
2. rank applicants;
3. identify compliance failures;
4. recommend corrective measures;
5. issue certificates;
6. renew certificates automatically;
7. share certification results with buyers.

If one undertaking controls all six functions, certification can become a significant competitive infrastructure.

4. Relevant Market

Competition analysis should begin with defining the relevant market.

Possible markets include:

A. Certification services

For example:

certification services for cybersecurity products.

B. Accreditation services

The market may concern organisations that certify the certifiers themselves.

C. Certification technology

This could involve:

• certification software;
• automated audit platforms;
• verification APIs;
• compliance databases.

D. Certification data

A certification database containing trusted information could itself have competitive value.

E. Downstream product markets

Certification may affect competition in:

• food;
• pharmaceuticals;
• construction;
• technology;
• environmental products;
• financial services.

The relevant market depends upon substitutability and competitive conditions rather than merely the technical label attached to the certification system.

5. Certification as an Essential Input

Certification can become particularly important when:

• government regulations require it;
• large retailers require it;
• procurement rules require it;
• major platforms require it;
• consumers strongly rely on it;
• insurers require it;
• financing depends upon it.

In such circumstances, certification may become commercially indispensable even if it is not legally mandatory.

This raises possible refusal-to-deal and access concerns.

6. Automated Certification and Abuse of Dominance

A dominant certification organisation could potentially abuse its position by:

• refusing certification without objective justification;
• imposing discriminatory conditions;
• charging excessive fees;
• delaying competitors' certification;
• providing faster certification to affiliated firms;
• using confidential certification data against competitors;
• imposing unnecessary technical requirements;
• changing standards selectively;
• tying certification to unrelated services.

Dominance itself is generally not unlawful.

The competition issue arises from abusive or exclusionary conduct associated with that dominance.