About | HeinOnline Law Journal Library | HeinOnline Law Journal Library | HeinOnline
LOG IN
LOG IN

2017 U. Ill. L. Rev. 1775 (2017)
Artificial Intelligence & Collusion: When Computers Inhibit Competition

handle is hein.journals/unilllr2017 and id is 1816 raw text is: ARTIFICIAL INTELLIGENCE & COLLUSION: WHEN COMPUTERS INHIBIT COMPETITION Ariel Ezrachi* Maurice E. Stucke* The development of self-learning and independent computers has long captured our imagination. The HAL 9000 computer, in the 1968 film, 2001: A Space Odyssey, for example, assured, I am put- ting myself to the fullest possible use, which is all I think that any con- scious entity can ever hope to do. Machine learning raises many challenging legal and ethical questions as to the relationship between man and machine, humans' control-or lack of it-over machines, and accountability for machine activities. While these issues have long captivated our interest, few would envision the day when these developments (and the legal and ethical challenges raised by them) would become an antitrust issue. Sophisti- cated computers are central to the competitiveness of present and fu- ture markets. With the accelerating development of AI, they are set to change the competitive landscape and the nature of competitive re- straints. As pricing mechanisms shift to computer pricing algorithms, so too will the types of collusion. We are shifting from the world where executives expressly collude in smoke-filled hotel rooms to a world where pricing algorithms continually monitor and adjust to each other's prices and market data. Our paper addresses these developments and considers the ap- plication of competition law to an advanced computerised trade en- vironment. After discussing the way in which computerised technol- ogy is changing the competitive landscape, we explore four scenarios where AI can foster anticompetitive collusion and the legal and ethi- cal challenges each scenario raises. * Slaughter and May Professor of Competition Law, The University of Oxford; Director, Ox- ford University Centre for Competition Law and Policy. ** Professor, University of Tennessee College of Law; Co-founder, Data Competition Institute. We would like to thank for their helpful comments, the participants at the Oxford University Centre for Competition Law and Policy's Round Table Discussion on Information Exchange and Market Transparency, Participants at the Bar Ilan University conference on Fairness in Antitrust, Greg Taylor and members of the Oxford Internet Institute. 1775

What Is HeinOnline?

HeinOnline is a subscription-based resource containing thousands of academic and legal journals from inception; complete coverage of government documents such as U.S. Statutes at Large, U.S. Code, Federal Register, Code of Federal Regulations, U.S. Reports, and much more. Documents are image-based, fully searchable PDFs with the authority of print combined with the accessibility of a user-friendly and powerful database. For more information, request a quote or trial for your organization below.



Short-term subscription options include 24 hours, 48 hours, or 1 week to HeinOnline.

Purchase Access

Contact us for annual subscription options:

Contact Us

Already a HeinOnline Subscriber?

Log In

profiles profiles most