Everyone is probably familiar with pricing algorithms through their own personal lives, be it with insurance quotes or airline tickets or a host of other products/services. However, as Stephan Nagel points out, these algorithms are coming under increasing scrutiny from a competition perspective - from both a prohibition of cartels and a prohibition of abuse of a dominant market position perspective.
There are obviously different ways in which pricing algorithms intersect with competition law depending on their development, their purpose and how they enforce business decisions and strategies. It is important that companies do not overlook this when implementing pricing algorithms.
It is also true that as the use of algorithms, machine learning and AI increases within business processes, there will continue to be more legal concerns raised, be it for competition or other reasons. Companies must not forget about regulators or the law when developing and implementing these solutions and compliance should be incorporated into them from the start.
Price algorithms, meaning software that searches the internet for prices and adjusts own online prices in accordance, are increasingly coming into the focus of competition authorities.