The CMA has published an eye-opening paper on algorithms,
showing how they can, if misused, reduce competition in digital
markets and cause harm to consumers. So, if you sell online,
take note as this paper shows the 'direction of travel' on
key issues such as personalised pricing, personalised ads and
product recommendations. It has launched an
accompanying call for evidence.
The CMA acknowledges that machine learning, algorithms and AI
can be beneficial for consumers, such as by facilitating individual
recommendations for consumers (thus saving time) and allowing
businesses to optimise interfaces and actions with customers
('choice architecture'). However, it is deeply concerned
that algorithmic tools and processes can cause online harms and
discrimination, not helped by the lack of transparency when they
are deployed.