Online pricing algorithms - a new front in the battle against resale price maintenance

The European Commission has fined four consumer electronics manufacturers a total of €111 million for fixing the online prices of their retailers. The case illustrates the compliance risks of using algorithms and the challenge faced by regulators around the globe who fear that pricing software and online algorithms could facilitate market manipulation and collusion.

Colleagues in our Competition and Regulatory team have reported on this important ruling which is relevant to any business which monitors prices across their networks of franchisees or distributors and uses pricing algorithms.

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