US EU Investigate AI Algorithms Fueling Price-Gouging Cartels
US EU Investigate AI Algorithms Fueling Price-Gouging Cartels

US EU Investigate AI Algorithms Fueling Price-Gouging Cartels

News summary

Artificial intelligence is increasingly transforming market dynamics and raising significant antitrust concerns in both the European Union and the United States, particularly around unilateral conduct such as self-preferencing, predatory pricing, and algorithmic collusion. In the U.S., regulators are focusing on AI-facilitated price-fixing and collusion, which could lead to supercompetitive prices and consumer harm, with enforcement agencies signaling heightened scrutiny on these practices. The EU addresses similar issues under Article 102 of the TFEU and the Digital Markets Act, especially targeting dominant digital platforms that may use AI to distort competition. Meanwhile, widespread AI adoption in Mexico reveals a strategic maturity gap, with most companies using AI only superficially rather than leveraging it for significant business transformation, highlighting risks of hype and cultural barriers. Additionally, AI's dual role in cybersecurity—both aiding law enforcement in detecting cybercrime and potentially being used by criminals to conceal attacks—underscores the complexity of AI’s impact on digital forensics and threat mitigation. These developments collectively illustrate AI's profound implications across competition law, business strategy, and cybersecurity, prompting calls for stronger governance and regulatory adaptation globally.

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