Algorithmic Collusion: Competition Law Regulation and Beyond it

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Algorithmic Collusion: Competition Law Regulation and Beyond it (2023.6)

TOSA, Kazuo (Professor, Faculty of Law, Konan University and Visiting Researcher of the Competition Policy Research Center)

Abstract	File （PDF)
This paper summarizes the competition law problems caused by price setting algorithms based on previous discussions and explores how competition authorities could regulate algorithmic collusion under current competition laws. 　In addition, distinguishing between artificial agreements that use algorithms as illegal price cartel and tacit collusion by algorithms that are not illegal under current law, this paper explores plus factors evidencing price cartel caused by algorithms, and advocates the introduction of a new liability framework that requires transparency in algorithms to infer violations. 　Finally, this paper suggests the new system that incorporates compliance by design to prevent tacit collusion, such as the former reporting system concerning parallel pricing conducts in Japanese Antimonopoly Act.	CPDP-94-J(PDF:1,594KB)

Abstract

File （PDF)

　
　This paper summarizes the competition law problems caused by price setting algorithms based on previous discussions and explores how competition authorities could regulate algorithmic collusion under current competition laws.
　In addition, distinguishing between artificial agreements that use algorithms as illegal price cartel and tacit collusion by algorithms that are not illegal under current law, this paper explores plus factors evidencing price cartel caused by algorithms, and advocates the introduction of a new liability framework that requires transparency in algorithms to infer violations.
　Finally, this paper suggests the new system that incorporates compliance by design to prevent tacit collusion, such as the former reporting system concerning parallel pricing conducts in Japanese Antimonopoly Act.

CPDP-94-J(PDF:1,594KB)