Saturday, March 02, 2024

Price Fixing by Algorithm is Still Price Fixing

Landlords and property managers can't collude on rental pricing. Using new technology to do it doesn't change that antitrust fundamental. Regardless of the industry you're in, if your business uses an algorithm to determine prices, a brief filed by the FTC and the Department of Justice offers a helpful guideline for antitrust compliance: your algorithm can't do anything that would be illegal if done by a real person. Today, the FTC and Department of Justice took action to fight algorithmic collusion in the residential housing market. The agencies filed a joint legal brief explaining that price fixing through an algorithm is still price fixing. The brief highlights key aspects of competition law important for businesses in every industry: (1) you can't use an algorithm to evade the law banning price-fixing agreements, and (2) an agreement to use shared pricing recommendations, lists, calculations, or algorithms can still be unlawful even where co-conspirators retain some pricing discretion or cheat on the agreement.

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Comments

Good. Too much of this stuff going on all over.

#1 | Posted by GalaxiePete at 2024-03-02 07:18 PM

Pretty much all prices are set with an algorithm of some sort. When does a mathematical determination of market value becomealgotiyhmic price fixing?

#2 | Posted by Miranda7 at 2024-03-02 08:15 PM

What are some of the common price fixing algorithms in use?

(It's your claim.)

#3 | Posted by snoofy at 2024-03-02 08:17 PM

>>>What are some of the common price fixing algorithms in use?

That fookin wendy's burger at noon...

#4 | Posted by schifferbrains at 2024-03-02 08:21 PM

(It's your claim.)
#3 | POSTED BY SNOOFY

No that's not the claim.

You are confusing "setting" with "fixing".

Price setting - process where a company establishes the actual monetary value that will be assigned to a product or service.
Price fixing - the maintaining of prices at a certain level by agreement between competing sellers.

#5 | Posted by oneironaut at 2024-03-02 08:23 PM

Okay, what are some of the price setting or price fixing algorithms.

#6 | Posted by snoofy at 2024-03-02 08:26 PM

#5 That's what I'm asking. When does price setting cross the line to become price fixing? If a gas station owner looks across the street and sees the owner changing his sign and he changes his sign to stay competitive, is that price fixing, or responding to market changes? If I am an authorized dealer for Widgets and the widget manufacturer says I am in violation of my contract if I sell them for less than MSRP, is that price fixing? Sincere questions.

#7 | Posted by Miranda7 at 2024-03-02 09:13 PM

"When does price setting cross the line to become price fixing?"

^
Are you grown adult who doesn't understand what price fixing is?

#8 | Posted by snoofy at 2024-03-03 07:28 PM

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