Research on Anti-Monopoly Regulations Against Algorithmic Price Discrimination

Abstract

In the era of the digital economy, the algorithm is the core of productivity. As for the price, operators use algorithms to collect consumer data and customize “differentiated” prices for specific consumers, so as to gain or maintain competitive advantages. Clarifying the connotation, extension, and comprehensive influence of algorithmic price discrimination is the foundation of legal regulation. Illegal algorithmic price discrimination cannot be regulated spontaneously by the market alone, which needs legal intervention. This differential treatment of algorithmic price discrimination is prone to trigger serious unfair competition, resulting in an anti-competitive effect, so anti-monopoly regulation is necessary and reasonable. Information technologies such as data and algorithms further challenge traditional anti-monopoly regulation. In legislation, the definition of relevant markets, the determination of market dominance, the judgment of legitimate reasons, and the identification of the competition blockade impact are all vague. In supervision, the backward supervision technology and the supervisors that need to improve their ability also limit supervision efficiency. Therefore, we should first grasp the development status and value goal of China’s digital economy, and then promote and amend the existing legislation from three aspects, including subject, behavior, and result. Finally, we should not only improve the new mode of pre-regulation and post-regulation step by step, and regulate technology with technology, but also adjust the supervision allocation and supervision subjects, aiming to build a new pattern of anti-monopoly joint governance.