What An Illegal Price-Fixing Bot Might Look Like

Law360, New York (April 19, 2017, 2:00 PM EDT) -- Generally, price-setting bots are not violating the Sherman Act.[1] 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 can acquire Product A. Bot A is programmed to scan prices of Product A and...

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