Competition Bureau Publishes Report on Algorithmic Pricing

The Competition Bureau has released a new report summarizing feedback gathered through its recent public consultation on algorithmic pricing and its impact on competition.

As algorithms have become increasingly common, more businesses are relying on automated tools to help shape their pricing strategies.

The report highlights key concerns raised during the consultation: dynamically setting or recommending prices can create market efficiencies; algorithmic pricing can facilitate anticompetitive behaviour; limited data transparency may negatively affect consumers, workers and competition; and government regulations should curb anticompetitive conduct without hindering innovation.

“Algorithmic pricing can improve efficiency and choice, but it also presents risks related to fairness, transparency and competition,” says Jeanne Pratt, acting commissioner of competition. “We will continue to engage with partners, the international community, market participants and Canadians as we advance our understanding of these emerging competition issues.”

The bureau received more than 100 submissions from a diverse group of contributors, including individuals, businesses, industry associations, academics, legal experts and consumer advocacy organizations.