'Algorithmic' hotel pricing draws legal, regulatory scrutiny
Competition authorities on both sides of the Atlantic are scrutinizing the use of algorithms in pricing strategies, concerned that they may enable price-fixing and collusion
A growing number of businesses are leveraging pricing algorithms to boost revenue and gain a competitive advantage. Simultaneously, competition regulators are increasing their scrutiny of these algorithms to detect any anticompetitive or unfair practices they may enable.
Key takeaways
- Kamala Harris’s August 2024 economic plan targeted algorithmic pricing, and the DOJ, with eight states, filed its first civil case against an algorithm provider for alleged unlawful practices;
- Courts may find that pricing algorithms alone don’t violate antitrust laws and can promote competition by improving pricing strategies. However, companies should be mindful of antitrust risks and take steps to mitigate them.
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