Pricing Algorithms, Collusion and Corporate Compliance

By on February 13, 2018

February 13, 2018

Pricing algorithms are now commonly used by sellers as a way to maximize profits. Attorney Jeffrey Cross, in this Today’s General Counsel article, considers a question that sellers in some industries will have good reason to address: When do pricing algorithms facilitate tacit collusion and how should corporate antitrust compliance programs handle this risk? A now familiar example of a market structured by a pricing algorithm is airline tickets, where data about supply and demand, cost of the service – and, in some cases, prices being charged by competitors – can be part of the equation. Tacit collusion, the author points out, is not per se unlawful, but there are a number of so-called “plus factors” that can raise it to the level of an antitrust violation. It’s important to know what they are and how to steer clear of them.

Read the full article at:

Today’s General Counsel

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