DOJ Antitrust Chief Delrahim: Criminal Case Against Anti-competitive Search Algorithms Coming

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At the Senate antitrust subcommittee hearing on Oct 3, Department of Justice antitrust chief Makan Delrahim teased that the DOJ is wrapping up what it bills as a first-ever criminal case against the anticompetitive use of search algorithms in a "price-fixing scheme." Sen Richard Blumenthal (D-CT) asked about search algorithms used by companies "like Google or Yelp!" that use algorithms that can have "profound market effects," like disadvantaging less tech-savvy small businesses by "guiding users away from the best option at the cheapest price." He asked what resources Delrahim had to scrutinize algorithms and AI systems as a "potential misuse of market power." The antitrust chief suggested they were already being employed in that pursuit. Delrahim said that the anticompetitive use could take a couple of forms, like two potential competitors using the same algorithm "as a way of effectuating a price-fixing scheme." "We actually have a case that's a criminal case that is going to be coming to conclusion in the next two weeks, I think, and then we will make public the use of that, and I believe it is the first of its kind." He said if there is market power that can harm innovation or new entry or other threat to market power via that algorithm, "it certainly could be a violation of the antitrust laws," he said, but that it is something the US and the European Union are struggling with.


DOJ Antitrust Chief Delrahim: Criminal Case Against Anti-competitive Search Algorithms Coming