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21 - Competition Law and AI

from Part III - Corporate and Commercial Law

Published online by Cambridge University Press:  21 March 2024

By
Thomas Cheng
Edited by
Ernest Lim  and
Phillip Morgan
Ernest Lim
Affiliation:
National University of Singapore
Phillip Morgan
Affiliation:
University of York
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Summary

The legal treatment of autonomous algorithmic collusion in light of its technical feasibility and various theoretical considerations is an important issue because autonomous algorithmic collusion raises difficult questions concerning the attribution of conduct by algorithms to firms and reopens the longstanding debate about the legality of tacit collusion. Algorithmic collusion, namely, direct communication between algorithms, which amounts to express collusion, is illegal. Intelligent and independent adaptation to competitors’ conduct by algorithms with no direct communication between them, which is tacit collusion, is generally legal. There should be ex ante regulation to reduce algorithmic collusion.

Keywords

Competition lawalgorithmic collusiontacit collusion
Type
Chapter
Information
The Cambridge Handbook of Private Law and Artificial Intelligence , pp. 472 - 491
Publisher: Cambridge University Press
Print publication year: 2024

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