Algorithmic Pricing - A Competition Law Perspective on Personalised Prices

21 Pages Posted: 19 Apr 2023 Last revised: 24 May 2023

See all articles by Viktoria H.S.E. Robertson

Viktoria H.S.E. Robertson

Vienna University of Economics and Business; The Competition Law Hub

Date Written: April 12, 2023

Abstract

In the age of big data, sellers can amass a considerable amount of up-to-date information about their customers that algorithms can then use in order to engage in personalised pricing practices at a large scale. From a competition law perspective, several questions arise in this context. The prospect of an increased personalisation of prices may lead to a gradual disappearance of uniform market prices, which have been at the centre of economics-based competition law for many years. This could call into question many of the general tools of competition analysis. Furthermore, the question poses itself to what extent algorithmic personalised pricing could constitute an anti-competitive practice that can and should be challenged under current competition laws. While some theories of harm, like discrimination and excessive prices, are possible candidates when analysing the applicability of well-known abuses to algorithmic personalised pricing, consumer trust in digitalisation and markets may warrant the elaboration of a theory of harm specifically tailored to algorithmic personalised pricing. In addition, the question poses itself whether the particular harm that algorithmic personalised pricing can inflict should be considered in more tailored regulation. While this contribution’s focus is on EU competition law, similar principles can guide the discussion in other jurisdictions.

Keywords: abuse of dominance; algorithmic pricing; economics in antitrust; market dominance; personalised pricing; price discrimination; theories of harm

Suggested Citation

Robertson, Viktoria H.S.E., Algorithmic Pricing - A Competition Law Perspective on Personalised Prices (April 12, 2023). Graz Law Working Paper No. 08-2023, Available at SSRN: https://ssrn.com/abstract=4422896 or http://dx.doi.org/10.2139/ssrn.4422896

Viktoria H.S.E. Robertson (Contact Author)

Vienna University of Economics and Business ( email )

Welthandelsplatz 1
Vienna, Wien 1020
Austria

HOME PAGE: http://www.wu.ac.at/en/complaw/

The Competition Law Hub ( email )

Austria

HOME PAGE: http://www.complawhub.eu

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