Research On Anti-monopoly Regulation Of Algorithm Price Discrimination

Algorithmic price discrimination is the advanced evolution of traditional price discrimination,yet distinctly different from it.Algorithmic price discrimination is a new type of monopolistic behavior in the context of digital economy,which has the characteristics of digital economy development.Algorithmic price discrimination acts directly on end-consumers,which has a wider scope and a high degree of uncertainty in the analysis of its competitive effects.Algorithmic price discrimination temporarily improves the efficiency of resource allocation and provides benefits to some groups with low willingness to pay,which has its positive side.However,the logic of Internet Competition shows that when companies clear their competitors through a low-revenue or even loss-making strategy,they will double back their upfront investment costs.Data is feedback on consumers’ personal attributes,and enough data will expose consumer privacy to the extent that algorithms can predict consumer preferences or even influence consumer decisions to be made,and their deprivation of consumer benefits can even exceed actual consumer gains.The success of algorithmic price discrimination depends on the collection of consumer data,and is more inseparable from powerful algorithmic analysis.By combing through the paths of operators implementing algorithmic price discrimination,it is intuitive to find the intervention nodes that regulate the behavior.This paper takes algorithmic price discrimination as the object of study,focuses on the dilemma of regulating it under the existing antitrust law framework,and seeks inspiration by examining the regulatory innovations of major antitrust jurisdictions in the world,then makes suggestions for improvement based on China’s antitrust enforcement practice and enforcement needs.Excluding the introductory and concluding sections,this paper will be discussed from the following four aspects.The first part is the interpretation of the basic concept of algorithmic price discrimination and the analysis of the current state of legal regulation.Algorithmic price discrimination is similar to first-tier price discrimination in the concept of economics,which is the complete deprivation of consumer surplus by operators.In the context of antitrust law,algorithmic price discrimination will cause damage to consumers’ interests and the order of market competition.Algorithmically-enhanced price discrimination is more insidious,more dynamic and more destructive.The realization of algorithmic price discrimination is closely coordinated from data collection to data analysis,and a detailed analysis of its realization path can help better realize the regulation of algorithmic price discrimination.This part elaborates on the necessity of regulating algorithmic price discrimination behaviors from three aspects:competition effect,consumer rights damage and practical performance.Meanwhile,through the analysis of the main points of the relevant laws in the current legislation involving the governance of algorithmic price discrimination,the advantages of the antitrust regulation path are compared.In the second part,the idea of regulating the abuse of market dominance by the existing anti-monopoly law in China is developed.The new characteristics of platform monopoly behavior expose the traditional relevant market definition tools and market share analysis methods to the risk of failure,while the increasingly important data elements lack suitable quantification methods.The criteria for identifying algorithmic price discrimination are too solid,and when the object of the transaction becomes the consumer,it is difficult to grasp either the same trading conditions or the identification of differential treatment.In particular,the lack of clarity in the setting of the reasonableness defense has left a gap in the system for platform operators.An in-depth analysis of the dilemma of the anti-monopoly law regulating algorithmic price discrimination is a solid foundation for improving the existing system.The third part examines the relevant regulations in the EU,the US and Japan,which have made institutional innovations in the anti-monopoly field of platform economy.The regulation of algorithmic price behavior in the EU focuses on data protection,while the US takes the perspective of algorithmic governance.Japan has also done something in recent years to address the monopoly problem of mega-platforms,and its innovation in regulatory approaches is worth learning from.The requirement of transparency obligations on operators for algorithmic decision-making is an important prerequisite for achieving algorithmic regulation and accountability,and promoting the implementation of a front-loaded regulatory approach can effectively alleviate the current difficult situation of enforcement.The fourth part will discuss how to improve the antitrust law to regulate algorithmic price discrimination based on the enforcement practice in China.For one thing,it is to improve the traditional antitrust enforcement tools,including the improvement of the relevant market definition tools and the reconsideration of the elements of market dominance determination.For another,based on the provisions of the current anti-monopoly law,it is suggested to cancel the restriction on the same conditions of the transaction counterpart,take the impact of consumer interests as the core judgment standard,and fix the defense of business necessity and efficiency as the reasonable defense.At the same time,it is recommended that the regulatory system of algorithmic price discrimination can be improved by strengthening antitrust supervision measures,using dynamic supervision techniques and building a strong professional supervision team.Finally,a legal accountability mechanism with dual accountability for platform operators and algorithm developers should be established.