Monday, December 31, 2018

Tackling Algorithmic-Facilitated Tacit Collusion in a Proportionate Way

Paolo Siciliani, UCL Faculty of Laws; Bank of England is Tackling Algorithmic-Facilitated Tacit Collusion in a Proportionate Way.

ABSTRACT: For the use of price-matching algorithms to facilitate exploitative price coordination the common adoption by all rival online-sellers may be required. At the same time, this common course of conduct may be justified by the need to reduce the risk of being undercut and so being unable to recover fixed costs. Ultimately, antitrust enforcers should rely on established price-cost tests in order to establish when the use of such algorithms is illegitimate. The paper also questions whether e-marketplace platforms should face antitrust scrutiny if retailers use algorithms.

https://lawprofessors.typepad.com/antitrustprof_blog/2018/12/tackling-algorithmic-facilitated-tacit-collusion-in-a-proportionate-way.html

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