The development of Artificial Intelligence and the growing use of algorithms to optimize prices have generated significant debate about their benefits and potential adverse effects on competition and consumers. Two key issues dominate this discussion: algorithmic price discrimination through personalized pricing and algorithmic tacit collusion. While the risks and opportunities of algorithmic tacit collusion have been extensively studied, the potential harm from algorithmic price discrimination remains underexplored. Notably, no legal cases have yet addressed abusive algorithmic price discrimination.
This article examines whether the current competition law framework is adequate to tackle algorithmic price discrimination that harms consumers. It argues for robust competition law enforcement under Article 102(a) TFEU to ensure that algorithmic pricing does not become a tool for exploitative abuse in the digital economy. However, it also outlines how case law is underdeveloped and, in some aspect, hostile to submitting personalized pricing under Article 102(a) TFEU.
