Browsing by Subject "Algorithmic Collusion"

Due to the rising use of pricing algorithms equipped with machine learning, there are concerns over whether Article 101 of the Treaty on the Functioning of the European Union (TFEU) can effectively capture any such algorithmic collusion, particularly in the absence of any intention or action from the undertakings utilizing them. The machine learning algorithms can be shown to be capable of utilizing collusive strategies, and in the absence of a meeting of minds, it becomes pertinent to consider if their deployment could nonetheless amount to behaviour contrary to European competition law. This thesis examines the legal framework of Art. 101 TFEU and considers how it can be applied to cases of collusion achieved or sustained through the use of pricing algorithms. A limited extension of the current interpretation of Art. 101 is proposed, in order to ensure that algorithmic collusion can be effectively captured and enforced against. Without this extension, it is highly possible that algorithmic collusion would escape the remit of EU competition law – and in some cases it may already have. It is argued that the widened interpretation should specifically apply to cases of algorithmic collusion as, assuming this is not offensive to the integrity of Art. 101 nor to certainty in application, it will best accommodate for growing use of technological systems. Furthermore, given the rapidly growing technology sector and proliferation of tools such as pricing algorithms, a flexible approach based on the interpretation of Art. 101 TFEU rather than ‘hard’ legislation is the most appropriate form of competition regulation. This thesis will furthermore consider the liability concerns that may arise from the widened interpretation of Art. 101 and borrow analyses from English law to show why these concerns will ultimately be unfounded. In this thesis it is ultimately concluded that major reform is not needed to ensure the capture and enforcement of algorithmic collusion, and that judicial interpretation can ensure the proper capture of algorithmic collusion, without affecting the integrity or other application of Art. 101 TFEU.