Do Androids Dream of Electronic Collusion? An Analysis of Algorithmic Collusion under Australian Law

Deniz Kayis

Australian Journal of Competition and Consumer Law

Deniz Kayis, ‘Do Androids Dream of Electronic Collusion? An Analysis of Algorithmic Collusion under Australian Law’ (2021) 29(3) Australian Journal of Competition and Consumer Law 176

Abstract

Sophisticated algorithms are becoming ever more commonplace. With them comes the risk of "algorithmic collusion". That is, collusion enabled, facilitated or conducted by algorithms. Adopting the conceptual framework developed by Ezrachi and Stucke, this article examines the Australian legal system's interaction with four potential ways in which algorithms could enable anti-competitive outcomes: as facilitators of traditional collusion, as digital connectors between hubs and spokes, as tools used unilaterally to enable stable tacit collusion and, finally, as autonomous self-learning actors. The article concludes that current statutory provisions may not be capable of overcoming the challenges associated with detecting, investigating and litigating algorithm-enabled co-operation.