ABA Report Explores Algorithms' Impact on Competition and Compliance
Algorithms, prevalent in our digital lives, are now under antitrust scrutiny. The American Bar Association's (ABA) Section of Antitrust Law has published a report exploring their impact on competition and compliance. Released in Fall 2018, the report titled 'Algorithms: Challenges and Opportunities for Antitrust Compliance' offers practical considerations for practitioners.
The report delves into the dual nature of algorithms - their potential to facilitate collusion, both overt and tacit, and their procompetitive benefits such as faster price adjustments and improved resource allocation. US antitrust enforcers, the report notes, analyze algorithm-enabled behavior under the same legal standards, regardless of the technology involved. However, the effectiveness of existing antitrust tools in addressing algorithm-related concerns is debated.
Globally, nations are taking a measured approach. They are monitoring developments and focusing on targeted action, acknowledging the need to balance the benefits and risks of algorithms in the digital economy.
The ABA report serves as a guide for practitioners, emphasizing the importance of ensuring algorithms are not engaged in anticompetitive behavior and advocating for AI-enhanced compliance screening. As algorithms continue to shape our digital lives, their impact on antitrust compliance will remain a key focus for enforcers and practitioners alike.
