By David Evans, Kelley Drye & Warren LLPApril 19, 2017, 2:00 PM EDT
Law360, New York (April 19, 2017, 2:00 PM EDT) -- Generally, price-setting bots are not violating the Sherman Act. In competitive markets, competitors set price at cost. If they can set price based on a competitor’s price, the market is concentrated. In a concentrated market, one would expect oligopolistic or parallel pricing; it is not illegal. Using a bot to do that is just making the process more efficient.
At what point would, or could, a bot engage in illegal price-fixing? Here are a couple scenarios:
Scenario One: Customer A pulls up the webpage where it...