Our new article, authored by our colleague Lidija Marković, has been published by Forbes Serbia. The article examines the legal risks associated with the increasingly widespread use of pricing algorithms, as well as the practical steps companies can take to identify and mitigate those risks.
Software that monitors market data, competitors’ behaviour, demand and other parameters enables companies to adjust their prices almost instantly. However, these very capabilities raise the question of whether algorithms can facilitate price coordination between competitors even in the absence of a traditional direct agreement between them. This issue has already attracted the attention of European competition authorities, which are increasingly examining how algorithms operate, the sources of data they rely on, as well as situations in which multiple competitors use the same platform or software solution.
These developments are particularly relevant for companies operating in Serbia. Serbian competition law prohibits direct and indirect price coordination through restrictive agreements and concerted practices, while the domestic legal framework, under certain conditions, also provides for criminal liability for entering into restrictive agreements that determine prices.
Can competitors’ use of the software result in unlawful coordination? Where is the line between the efficient use of technology and an infringement of competition law, and how can companies manage these emerging legal risks? Read more in our article for Forbes Serbia.
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