Personalised pricing is a price discrimination practice that has become more and more prominent in the age when algorithms and artificial intelligence facilitate the implementation of more customer-specific prices. In essence, a large amount of personal data is processed in the course of determining a personalised price, resulting in different consumers seeing different prices for the same item at the same time and webpage, explains our associate Vladislav Leiri in his most recent article on Competition Connects blog.

”All things considered, we can expect personalised pricing to become more widespread in the coming years. While the legal framework for personalised pricing is relatively clear in the fields of consumer and personal data protection law, the boundaries set by competition law are not that clear and more legal certainty would be welcome. What is clear though, is that companies cannot discuss their pricing algorithms with competitors and companies in a dominant position are most at risk of breaching competition law with the use of personalised pricing. All companies are advised to keep an eye on the developments in the practice of competition authorities and be ready to react quickly to these developments,” Vladislav adds.

See more on Competition Connects.