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ARTICLE · 12 NOVEMBER 2018

Pricing Algorithms

Companies are increasingly using pricing algorithms to set the prices for their products automatically.

United KingdomAntitrust/Competition Law

Questions have been raised surrounding the existing provisions of competition law

Companies are increasingly using pricing algorithms to set the prices for their products automatically. These can promote competition by allowing companies to react quickly to changes in prices of competitors' products and compete keenly on price. However, their use also has a more sinister side as these algorithms can be used to align prices and reduce price competition to the disadvantage of consumers. There have been a couple of recent cases in the UK and the EU where the regulators have considered the application of the competition rules to pricing algorithms and whether the provisions are up to scratch.

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