Antitrust & Competition Policy Blog

Editor: D. Daniel Sokol
University of Florida
Levin College of Law

Friday, April 3, 2020

Regulation of Algorithm-Based Price Cartels in the Taxi-Online Business in Indonesia: Quo Vadis?

Udin Silalahi, National University of Malaysia (UKM) asks Regulation of Algorithm-Based Price Cartels in the Taxi-Online Business in Indonesia: Quo Vadis?

ABSTRACT: Digital economy is developing rapidly worldwide. New digital opportunities create new business opportunities like online taxi. The existence of online taxi in Indonesia is unavoidable because the developing of digital economy. Online taxi, like Grabcar and Gocar is operated its business through digital platform, such androids application (smartphone application). It makes customer easier to order and the rate of online taxi is cheaper than conventional taxi rate. The competition conventional taxi and online taxi is unavoidable. From the demand (consumer) side taxi online conventional taxi is in the same relevant market. They compete each other very fierce. The market share and income conventional taxi supposed decreased. The taxi online supposed doing price cartel. The question is how to determine that online taxi is occuring price cartel. This paper will attempt to analyze and provide feasible solutions concerning the regulation of Algorithm-Based Price Cartels in the Taxi-Online Business in Indonesia.

https://lawprofessors.typepad.com/antitrustprof_blog/2020/04/regulation-of-algorithm-based-price-cartels-in-the-taxi-online-business-in-indonesia-quo-vadis.html

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