New paper is out: Algorithm and Competition Law: Digital Versions of Article 4 Infringements

New paper is out: Algorithm and Competition Law: Digital Versions of Article 4 Infringements

My new paper (here) where I analysed the relationship between pricing algorithms and competition law within the framework of Article 4 of Law No 4054 on the Protection of Competition, is published by the Journal of Galatasaray University Faculty of Law. As we all know, the digital age affects the consumer behaviour in an increasing pace. While in the past consumers were only using online platforms for booking a plane ticket or a hotel room, nowadays, consumers can perform banking transactions, order a taxi or purchase their needs. The demand shift towards to online platforms naturally necessitates a shift from supply side as well. Undertakings’ sifting towards online platforms affected the competitive landscape. Undertakings, through better data collecting and analysing tools, can easily analyse the factors affecting the price and adjust sale prices instantly with very low marginal costs. The ability of undertakings to optimize their pricing strategies through algorithm driven software, increased the use of such tools. This, in turn, raised the question whether undertakings can use algorithms to behave in anti-competitive way. Together with efficiency gains associated with pricing algorithms, they can provide undertakings with new tools to behave anti-competitively. Whereas pricing algorithms can be used to implement an anti-competitive agreement, they can lead to anti-competitive pricing even in the absence of an agreement. Likewise, self-learning algorithms, even in the absence of a human will, can identify coordination as optimal strategy through trial-and-error and lead to decrease in consumer welfare.


Leave a Reply

Your email address will not be published. Required fields are marked *