CMA consults
on algorithm competition
The CMA is
seeking views and evidence on its paper on harms arising from algorithms.
On the specific
issue of whether algorithms may facilitate anti-competitive outcomes, the CMA previously
published an economic research paper on the role of pricing algorithms in
online markets (2018). This finds little
evidence of companies using algorithms to show personalized prices, but they
are sometimes used to change the order in which products are shown to
shoppers. However, it expressed a
tentative view that in markets that are currently highly competitive it seems
less likely that the use of data and algorithms would be so impactful that they
could enable sustained collusion.
The latest
consultation focuses less on algorithmic collusion and has a more consumer
protection angle. It is directed more at
unilateral conduct and the fairness and transparency of design choices.
While the
issues raised are not new, the consultation serves as a further reminder of the
CMA’s focus on the digital sector and apparent harms that may be caused by the use
of algorithms.
This
consultation closes on 16 March 2021.
https://www.gov.uk/government/consultations/algorithms-competition-and-consumer-harm-call-for-information
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