Addressing Algorithmic Collusion in Competitive Markets: Article 101 TFEU Implications and Beyond
(2024) JAEM03 20241Department of Law
Faculty of Law
- Abstract
- The increasing development of technology affects almost every part of the current economy. Now people can buy products online which was only possible at a brick-and-mortar store previously. With this in mind, algorithms have become important tools for businesses and have a crucial impact in competitive markets. As a result, we now may observe new forms of coordination that were not observed or possible before.
Since more firms use pricing algorithms, there is an emerging need to adjust the antitrust regulations. Considering the threats algorithms can cause to markets and algorithmic collusion without an explicit agreement or direct communication falls outside the scope of Article 101 Treaty on the Functioning of the European Union, the... (More) - The increasing development of technology affects almost every part of the current economy. Now people can buy products online which was only possible at a brick-and-mortar store previously. With this in mind, algorithms have become important tools for businesses and have a crucial impact in competitive markets. As a result, we now may observe new forms of coordination that were not observed or possible before.
Since more firms use pricing algorithms, there is an emerging need to adjust the antitrust regulations. Considering the threats algorithms can cause to markets and algorithmic collusion without an explicit agreement or direct communication falls outside the scope of Article 101 Treaty on the Functioning of the European Union, the main question arises do we have enough remedies to address this and should algorithmic collusion be regulated under the current legal framework which is quite different from traditional explicit cartel agreements.
It is difficult to answer this directly because current legal tools are designed to deal with “human facilitation of parallel conduct” and new ways of coordination were not foreseen when prohibitions were fashioned many years ago. Since Article 101 TFEU includes agreements, concerted practices and facilitating practices, the question also raises whether algorithmic tacit collusion can be referred to as an agreement or a concerted practice.
Overall, we are face to face with improbable and extreme developments in the tech sector which may affect competition in markets and negatively impact consumers. In this regard, it would be appropriate to refer to Niccolo Colombo’s words: “That’s the progress baby! And there is nothing you can do about it. As we cannot stop it, we can at least try to critically assess it at a human pace”.
We do not want to stop innovation, but in this thesis, it is assessed what this innovation might bring us in the future and what we can do to fight against its negative consequences. (Less)
Please use this url to cite or link to this publication:
http://lup.lub.lu.se/student-papers/record/9154996
- author
- Mursalli, Sevinj LU
- supervisor
-
- Julian Nowag LU
- organization
- course
- JAEM03 20241
- year
- 2024
- type
- H2 - Master's Degree (Two Years)
- subject
- language
- English
- id
- 9154996
- date added to LUP
- 2024-06-25 12:22:57
- date last changed
- 2024-06-25 12:22:57
@misc{9154996,
abstract = {{The increasing development of technology affects almost every part of the current economy. Now people can buy products online which was only possible at a brick-and-mortar store previously. With this in mind, algorithms have become important tools for businesses and have a crucial impact in competitive markets. As a result, we now may observe new forms of coordination that were not observed or possible before.
Since more firms use pricing algorithms, there is an emerging need to adjust the antitrust regulations. Considering the threats algorithms can cause to markets and algorithmic collusion without an explicit agreement or direct communication falls outside the scope of Article 101 Treaty on the Functioning of the European Union, the main question arises do we have enough remedies to address this and should algorithmic collusion be regulated under the current legal framework which is quite different from traditional explicit cartel agreements.
It is difficult to answer this directly because current legal tools are designed to deal with “human facilitation of parallel conduct” and new ways of coordination were not foreseen when prohibitions were fashioned many years ago. Since Article 101 TFEU includes agreements, concerted practices and facilitating practices, the question also raises whether algorithmic tacit collusion can be referred to as an agreement or a concerted practice.
Overall, we are face to face with improbable and extreme developments in the tech sector which may affect competition in markets and negatively impact consumers. In this regard, it would be appropriate to refer to Niccolo Colombo’s words: “That’s the progress baby! And there is nothing you can do about it. As we cannot stop it, we can at least try to critically assess it at a human pace”.
We do not want to stop innovation, but in this thesis, it is assessed what this innovation might bring us in the future and what we can do to fight against its negative consequences.}},
author = {{Mursalli, Sevinj}},
language = {{eng}},
note = {{Student Paper}},
title = {{Addressing Algorithmic Collusion in Competitive Markets: Article 101 TFEU Implications and Beyond}},
year = {{2024}},
}