Pricing Algorithms And Competition Law In The UK And Beyond

In the emerging digital age, companies are increasingly using and developing pricing algorithms to help them determine prices on a near real-time basis. In this article, the Regulation and Markets team considers how the use of these algorithms can impact competition, with a particular focus on the hotel online booking sector.

In the emerging digital age, companies are increasingly using and developing pricing algorithms to help them determine optimal prices on a near real-time basis. When used lawfully, pricing algorithms can lead to greater competition, reduced cost, and reduced barriers to market entry. In this way, there is potential for greater consumer efficiencies with access to "real-time" prices for consumers based on prevailing market conditions.