The influence of digital platforms and algorithms on legal regulation of competition

Abstract

The antitrust regulation faces challenges in the context of digitalization and algorithmization; several of them are analyzed in the article. The authors explore the influence of digital platforms and pricing algorithms on competitive environment, the practice of their application in view of monopolizing the market and the possibilities to resist such practice from the point of view of the antitrust legislation. They examine the approaches to regulating digital instruments of pricing in order to ensure fair competition. One of the approaches is based on the fact that there is no need to develop specific regulatory instruments due to the lack of information on the consequences of algorithmic pricing applied to competition. Another one implies checking every new pricing algorithm in order to establish its influence on competitive environment and allowing or prohibiting it based on that. The third approach suggests further control using new legal standards that differ from the current ones. Banning algorithmic pricing is viewed as unreasonable as the pricing itself becomes more economically effective. The question of responsibility is raised for the cases when cartels are formed as a result of the activity of computer software. It is concluded that the owners of the software must be held accountable for any actions of the algorithm, as no program can act of its free will, they are controlled by the creator or the right holder.