The CMA has published a study into pricing algorithms and whether they could be used to support illegal practices.
The research increases the CMA’s expertise at a time of widespread scrutiny of pricing algorithms and how they interact with competition law. The research posed key questions, including:
can algorithms aid “personalised pricing,” where customers are shown different prices for the same products, based on factors like their browsing history?
can they aid price fixing, where two or more companies collude together to raise their prices to customers?
In compiling the research, the CMA examined a wide range of literature and gathered information from firms offering legal price setting services. It also conducted online mystery shopping tests across various websites.
The findings will be used to inform work across the CMA’s portfolio, as it continues to expand its expertise in the digital sector.
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