Competition law in the age of AI: Confronting algorithmic collusion in the smart economy

Chen Li () and Ina Virtosu ()
Additional contact information
Chen Li: PhD in Law, Southwest University of Science and Technology, Centre of Latin American and CaribbeanStudies, Mianyang, China
Ina Virtosu: PhD in EU Law, University of Macau, SAR Macau, China

Smart Cities and Regional Development (SCRD) Journal, 2025, vol. 9, issue 2, 41-54

Abstract: AI-driven pricing has become vital in the smart economy, boosted by advancements in IoT, AI, and big data. While robots and AI systems enhance efficiency and drive innovation across digital commerce platforms, they also raise competition law concerns. Algorithmic collusion is a prime example, as autonomous algorithms can independently coordinate market behaviour, challenging traditional liability frameworks. Though competition laws in regions like the EU, US, and China generally prohibit algorithmic collusion, the complex structures of these algorithms make it difficult to pinpoint responsible parties and assign liability accurately. This paper explores these complexities and examines algorithmic collusion's implications for liability attribution through a comparative lens. While EU case law provides some regulatory guidance, it often falls short in addressing the unique nature of algorithmic collusion. China’s approach is more restrictive, at times overlooking the autonomy of advanced AI systems. Given its distinct characteristics, algorithmic collusion requires a regulatory approach that differs from traditional collusion, particularly regarding liability. Additionally, this paper argues for the potential special liability of AI designers, who, given their expertise and control over AI, may need to adhere to higher ethical standards. These considerations suggest a need for regulation that both safeguards fair competition and fosters innovation in the evolving digital economy.

Keywords: pricing AI; liability; regulation; ethical AI (search for similar items in EconPapers)
Date: 2025
References: Add references at CitEc
Citations:

Downloads: (external link)
https://scrd.eu/index.php/scrd/article/view/608/565 (application/pdf)
https://scrd.eu/index.php/scrd/article/view/608 (text/html)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:pop:journl:v:9:y:2025:i:1:p:41-54

DOI: 10.25019/qnjgmk44

Access Statistics for this article

More articles in Smart Cities and Regional Development (SCRD) Journal from Smart-EDU Hub, Faculty of Public Administration, National University of Political Studies & Public Administration Contact information at EDIRC.
Bibliographic data for series maintained by Professor Catalin Vrabie ().