Algorithms: How they can reduce competition and harm consumers
Paper from the CMA's Data, Technology and Analytics (DaTA) Unit, identifying potential harms to competition and consumers from the use of algorithms.
Documents
Details
The paper identifies potential harms to competition and consumers from the use of algorithms, focusing on those the Competition and Markets Authority (CMA) or other national competition or consumer authorities may be best placed to address.
- Press release: CMA lifts the lid on impact of algorithms
These include direct harms to consumers, such as personalisation of prices and other aspects of online choice architecture. They also include harms to competition, such as the use of algorithms to exclude competitors (for example, to facilitate self-preferencing) and the potential for algorithms to facilitate collusion.
The paper also summarises techniques that could be used to analyse algorithmic systems and the role of regulators in addressing these harms.
Call for information: closes 16 March 2021
We are now seeking views and evidence on the harms outlined in the paper to inform our Analysing Algorithms Program. We are also interested in information about specific issues with firms that we could examine and consider for future action. Stakeholders are invited to respond by 16 March 2021.
Visit our consultation page to find out more.
Background
The Competition and Markets Authority’s Data, Technology and Analytics (DaTA) unit is helping it stay ahead, using the latest in data engineering, machine learning and artificial intelligence techniques. The DaTA unit is a multidisciplinary team of 35 people that brings together data scientists, data engineers, technologists and behavioural scientists.
The publication of our paper marks the launch of the CMA’s Analysing Algorithms Programme. As part of this programme, we will work with others to identify problematic markets and firms violating consumer or competition law, take cases forward where we think action needs to be taken, and work with other regulators and industry to set standards and determine how algorithms should be audited.
Analysing algorithms event
On 25 January 2021 the CMA hosted a panel debate with Ariel Ezrachi, Bill Kovacic, Cathy O’Neil and Christo Wilson chaired by Stefan Hunt.
Analysing algorithms: How they can reduce competition and harm consumers - a panel discussion
Analysing algorithms: How they can reduce competition and harm consumers - a panel discussion
Analysing algorithms: A summary of the potential harms in the review paper
Analysing algorithms: A summary of the potential harms in the review paper
Analysing algorithms: An introduction and opening address by Andrea Coscelli
Analysing algorithms: An introduction and opening address by Andrea Coscelli