The Limits of Online Price Discrimination in Europe

52 Pages Posted: 2 Apr 2020 Last revised: 10 Jul 2023

See all articles by Alan M. Sears

Alan M. Sears

Center for Law and Digital Technologies (eLaw), Leiden Law School, Leiden University

Date Written: 2019

Abstract

As big data capabilities have increased, so too has the potential for price discrimination. Price discrimination occurs when sellers offer goods and services at different prices to different consumers. Profiles of consumers can be created based on a variety of factors, such as their location, past purchases or behaviors online, or, more frequently, a large number of factors that, when combined, enables sellers to serve tailored prices based on differences between consumer profiles. In addition to these algorithmic forms of price discrimination, simpler methods are also in use, such as basing prices solely on the basis of a consumer’s IP address.

This article aims to provide a comprehensive mapping of the boundaries of online price discrimination in Europe. While few legal provisions speak directly to online price discrimination or personalized pricing, a number of areas of law likely have a bearing on the extent to which price discrimination is legally permitted. As such, this article will examine competition law, consumer protection law, data protection law, and non-discrimination law in order to determine where online price discrimination may constitute noncompliance with one of the relevant provisions, as well as to denote where it appears that the framework is ill-equipped to adequately address the practice. Practical and sociological aspects relating to both online price discrimination and the application of the legal frameworks in these areas are also incorporated.

Keywords: Price Discrimination, Price Differentiation, Personalized Pricing, Algorithmic Pricing, Algorithmic Decision-Making, Big Data, Artificial Intelligence, Profiling, Fairness, Competition Law, Consumer Protection Law, Data Protection Law

Suggested Citation

Sears, Alan M., The Limits of Online Price Discrimination in Europe (2019). Columbia Science and Technology Law Review, Vol. 21, No. 1, 2020, Available at SSRN: https://ssrn.com/abstract=3550857

Alan M. Sears (Contact Author)

Center for Law and Digital Technologies (eLaw), Leiden Law School, Leiden University ( email )

P.O. Box 9520
2300 RA Leiden, NL-2300RA
Netherlands

HOME PAGE: http://https://www.universiteitleiden.nl/en/staffmembers/alan-m.-sears

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