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ARTICLE · 18 APRIL 2018

Artificial Intelligence And Algorithms In Cartel Cases: Risks In Potential Broad Theories Of Harm

A&O Shearman
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Algorithms and the use of Artificial Intelligence (AI) have become commonplace in a vast number of markets, and this has drawn the attention not only of competition law academics...

United StatesAntitrust/Competition Law
A&O Shearman
A&O Shearman
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Algorithms and the use of Artificial Intelligence (AI) have become commonplace in a vast number of markets, and this has drawn the attention not only of competition law academics and practitioners, but also of competition authorities. These authorities have expressed their concerns over the use of these algorithms to engage in anti-competitive practices.

Commissioner Vestager has named "the risk that automated systems could lead to more effective cartels" as one of the future challenges for cartel enforcement.1

Algorithms as monitoring tools for cartel enforcement

Algorithms can monitor competitors' behavior in the market, and this can be used as a facilitator of the implementation of cartels and the application of retaliation measures. In this case, humans agree on anti-competitive behavior and subsequently implement the cartel and monitor its implementation using algorithms that can instantly identify deviations and apply retaliation measures.

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