AI Tools, Antitrust Risks: The Hidden Dangers of Software Pricing Tools
These helpful tools come with no legal risk, right? Not necessarily.
December 13, 2024 at 02:16 PM
7 minute read
Artificial intelligence is everywhere and in every business. In numerous industries, these tools can offer significant benefits to companies. For example, in the hospitality industry, these tools can optimize prices and improve vacancy rates. Even better, these helpful tools come with no legal risk, right? Not necessarily.
In fact, though a complicated and uncertain area, multiple federal courts have permitted price-fixing claims to proceed based on competitors' common usage of the same algorithmic software tool, and the U.S. Department of Justice has taken the position that coordination of competition through an algorithm is no less illegal than direct collusion. As a result, companies need to seriously consider the potential antitrust risks when using AI-driven or algorithmic software-based third-party services for things such as pricing or inventory management. These tools can increase efficiency, but, depending on specifics, can also lead to serious antitrust risks.
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