AI-Enabled Price Discrimination as an Exploitative Abuse of Dominance under EU Competition Law

Abstract

The development of artificial intelligence and the growing use of algorithms to optimize prices have generated significant debate about their benefits and potential adverse effects on competition and consumers. Two key issues dominate this discussion: algorithmic price discrimination through personalized pricing and algorithmic tacit collusion. Although the risks associated with algorithmic tacit collusion have been extensively studied, the potential harms from algorithmic price discrimination remain underexplored. This article examines algorithmic price discrimination from an EU perspective and whether the current EU competition law framework is adequate to tackle algorithmic price discrimination that harms consumers. It argues for robust competition law enforcement under Article 102(a) Treaty on the Functioning of the European Union to ensure that algorithmic pricing does not become a tool for exploitative abuse in the digital economy.