The UK Competition and Markets Authority ("CMA") published a paper in January setting out how algorithms are believed to harm consumers. The CMA distinguishes between direct harm to consumers ("personalisation" measures to unduly discriminate) and potentially harmful foreclosure of competitors (e.g. self-preferencing to the detriment of other providers). It is especially noteworthy that the CMA expects players in digital markets to have appropriate documentation as to how their algorithms function in order to refute allegations of harmful behaviour. This includes having accessible "communications and internal documents about the business context, objectives, design, architectural diagrams, training (including relevant function(s) that has been maximised during an algorithm's training stage), key performance indicators (KPIs), and monitoring of algorithmic systems." Players in digital markets are expected to be able to explain how their algorithms function. Besides recordkeeping, this entails being able to demonstrate an understanding of how their algorithms operate. The UK Financial Conduct Authority and the Information Commissioner's Office have therefore published guidelines.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
