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Canada Urged to Hold Off on Cartel Rules for Algorithmic Pricing

By  |  August 5, 2025

Canada should avoid rushing to implement cartel-specific regulations for algorithmic pricing systems, according to a statement from several advocacy organizations connected to major digital platforms. These groups argue that early intervention could undermine potential efficiencies offered by the technology.

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    The comments come in response to the Competition Bureau’s June 10, 2025 release of its discussion paper on Algorithmic Pricing and Competition. Per a statement from the Bureau, the paper does not contain formal policy proposals but seeks public feedback—due by August 4, 2025—on how such technologies impact market competition.

    According to the Bureau’s document, “algorithmic pricing” is expected to be defined through three core features: automation via algorithms, the use of those algorithms to optimize pricing for goods or services, and reliance on diverse data inputs to inform those pricing decisions. The paper highlights both potential benefits, such as increased innovation and efficiency, and possible risks, including price coordination, price discrimination, and misleading practices regarding consumer data collection.

    Per a statement included in the paper, the Bureau is particularly focused on the potential for algorithmic tools to facilitate collusion or discriminatory pricing strategies. The agency also notes that given the widespread use of AI-based pricing systems across multiple industries, developments in this area will warrant close monitoring. Past discussion papers from the Bureau have sometimes preceded enforcement action, suggesting stakeholders will be watching the next steps carefully.

    Source: Global Competition Review