Algorithm-Based Pricing in Online Retailing As Concerted Practice Covering the ‘Predictable Agent’ With Article 101 (1) TFEU

17 Pages Posted: 11 Mar 2020

See all articles by Wolf Maik

Wolf Maik

Free University of Berlin (FUB) - Department of Law

Date Written: November 22, 2019

Abstract

Algorithm-supported pricing in online retailing markets is increasingly changing the conditions of competition. The enormous speed of price competition in the highly transparent markets of the digital economy, where companies can react significantly faster than consumers, promotes interdependent behavioural strategies between competitors with a tendency towards supracompetitive prices, even in markets that are not oligopolistically structured. Therefore, criteria are worked out in this article under which companies leave the area of market-induced parallel behaviour and instead the use of automated price algorithms can be seen as concerted behaviour within the meaning of Article 101 (1) TFEU.

Keywords: algorithms, competition, concerted practice, predictable agent

JEL Classification: K21

Suggested Citation

Maik, Wolf, Algorithm-Based Pricing in Online Retailing As Concerted Practice Covering the ‘Predictable Agent’ With Article 101 (1) TFEU (November 22, 2019). Available at SSRN: https://ssrn.com/abstract=3536959 or http://dx.doi.org/10.2139/ssrn.3536959

Wolf Maik (Contact Author)

Free University of Berlin (FUB) - Department of Law ( email )

Berlin, 14195
Germany

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