Inside AI Policy

April 12, 2024

DOJ, FTC describe when algorithmic price setting becomes price fixing

By Mariam Baksh / April 1, 2024

Federal antitrust authorities are highlighting the role of middlemen tech companies in enabling competitors’ collaboration to set prices, and optimize profits, by using shared algorithms.

“Companies across the economy are increasingly using algorithms to determine their prices,” the Federal Trade Commission said in a March 28 press release. “When a small group of algorithm providers can influence a major segment of a market, competitors are better able to use the algorithm provider to facilitate collusion.”

A Senate Judiciary subcommittee ...

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