1. In a case summarised by the Autorit de la concurrence (2011), it is noted that the directors of the French subsidiaries of Procter & Gamble, Unilever, Henkel, and Colgate-Palmolive engaged in a cartel agreement between 1997 and 2004 to fix prices of their laundry detergent products in the French retail grocery sector. They would meet three or four times a year in hotels and restaurants in the West Paris area to agree on prices. This behaviour is clearly a violation of competition law since "a violation of competition law necessitates some kind of communication between the companies concerned" (Autorit de la concurrence and Bundeskartellamt, 2019, page 2). However, firms do "have the right to adapt their behaviour intelligently to the existing or anticipated conduct of their competitors"(Autorit de la concurrence and Bundeskartellamt, 2019, page 2).

QUESTION

In the context of the case referred to above, could the use by firms of AI algorithms for price setting amount to a violation of competition law as defined in the first quote or would it constitute a fair exercise of their right as stated in the second quote? In the light of your response, what changes if any, would you propose to how a competition authority should regulate cartel-like behaviour?

- Please write in paragraphs with a detailed response :)

References

Autorit de la concurrence (2011), 8 December 2011: Laundry detergents cartel(Press release), available at:https://www.autoritedelaconcurrence.fr/en/communiques-de-presse/8-december-2011-laundry-detergents-cartel

Autorit de la concurrence and Bundeskartellamt (2019), Algorithms and Competition(Executive Summary), available at:https://www.autoritedelaconcurrence.fr/en/publications/76