ANTICOMPETITIVE NATURE OF PRICING ALGORITHMS
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DOI:
https://doi.org/10.55662/Keywords:
Algorithms, Price Fixing, Dynamic Market, Anti-Competitive, Pricing Policy, Competition Act, Market, CompetitorsAbstract
The Pricing strategy is one of the major determinants of the success or failure of any business endeavour. Such determinants are made through algorithms virtually now-a-days, which causes vertical agreement, which is not per se anti-competitive in nature. The advancement of 'pricing algorithms' presents one such issue. This becomes anti-competitive only when the pricing structure or strategy violates Section 3 of the Competition Act, 2002. Price fixing per se cannot be anti-competitive in nature. There could be price-fixing either traditionally or dynamically. The competition act aims in giving complete protection to the consumers and other competitors and prevent them from being exploited due to anti-competitive practises or any other unfair or unhealthy trade practices. The dynamic methods of price-fixing are evolving with greater importance nowadays.
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