Algorithmic pricing is on the rise worldwide. In sectors ranging from hospitality to concert tickets to ridesharing, businesses are using algorithms to guide pricing strategies for their products or services.
Today, the Competition Bureau published a What We Heard report highlighting the feedback received through its recent public consultation on algorithmic pricing and competition.
The Bureau received more than 100 submissions from a range of domestic and international respondents, including individuals, businesses, industry associations, members of the academic and legal communities, and consumer interest groups.
The report outlines the main issues that they raised and the four key themes echoed in their feedback:
- Dynamically setting or recommending prices creates market efficiencies.
- Algorithmic pricing can lead to anticompetitive behaviour.
- A lack of data transparency could harm consumers, workers and competition.
- Government regulations should address anticompetitive conduct without stifling innovation.
The purpose of the consultation was for the Bureau to build a robust understanding of algorithmic pricing so we could respond swiftly and effectively to this emerging trend. We thank all those who provided feedback.
