Should Algorithms Be Allowed to Set Prices?

Official title: Algorithmic pricing and competition

Closed Policy & Studies Economy & Jobs Finance & Consumer Technology & Digital

The Competition Bureau asked Canadians whether companies using algorithms to set prices could harm competition. Think airline tickets that spike when you search twice, or concert tickets that surge during high demand. This consultation gathered input on whether current competition laws can handle AI-driven pricing.

Why This Matters

Ever notice prices change when you search for the same flight twice? That's algorithmic pricing. It affects what you pay for hotels, concert tickets, groceries, and rideshares. If companies use AI to coordinate prices, you could end up paying more without any human ever agreeing to fix prices.

What Could Change

The Competition Bureau may update its enforcement approach to algorithmic pricing. New guidelines could clarify when AI-driven pricing crosses into anti-competitive territory. Companies using pricing algorithms might face closer scrutiny, especially in sectors like travel, entertainment, and retail.

Key Issues

Can algorithms facilitate price-fixing without explicit human coordination?
Are current competition laws adequate to address AI-driven pricing?
How should the Competition Bureau approach enforcement in algorithmic markets?

How to Participate

Review the What We Heard report to see how the Bureau summarized feedback.
Browse the written submissions from organizations and individuals who participated in the consultation.

What Happened

The Competition Bureau received written submissions from various stakeholders including academics, industry associations, and advocacy groups. These submissions are now publicly available. The Bureau has published a 'What We Heard' report summarizing the feedback received.