When Bots Set Prices: CMA Highlights Real World Risks Of Algorithmic Pricing

• Published date: 20 March 2026
• Subject Matter: Antitrust/Competition Law, Technology, Antitrust, EU Competition , Cartels, Monopolies, New Technology
• Law Firm: Akin Gump Strauss Hauer & Feld LLP
• Author: Ms Davina Garrod and Adam Kidane

Background

In a recent blog post, the UK Competition and Markets Authority (CMA) highlighted the increased antitrust compliance risk attached to the use of AI‑driven algorithmic pricing tools, which are becoming far more powerful and widespread. While these tools can deliver significant operational efficiencies and commercial benefits, they may increase the risk of collusion between competitors. The CMA's enforcement crosshairs are therefore actively focused on the ways AI may lead to coordinated pricing outcomes in breach of UK competition law.

The European Commission (Commission) has also singled out algorithmic pricing as an enforcement priority. The competition law risks attached to algorithmic pricing are specifically addressed in its Horizontal Cooperation Guidelines, which were published in 2023. Recent statements by Commission officials also point to a ramping up of investigations involving algorithmic pricing.

These developments should be viewed in conjunction with the regulatory scrutiny of potentially unfair or misleading technology-driven pricing practices such as 'drip' and 'dynamic' pricing. This comes against a backdrop of the enactment of UK and EU legislation designed to adapt consumer protection frameworks to the digital age such as the UK Digital Markets, Competition and Consumers Act, the EU Digital Services Act and Digital Fairness Act. Notably, the CMA closed its investigation of Ticketmaster in September 2025 for misleading sales practices during the Oasis Live '25 tour after it secured binding commitments to address its concerns. In the EU, Ticketmaster was the object of a complaint which was brought by consumer rights organisations in July 2025.

Rise of Algorithmic Pricing: Why is the CMA Paying (More) Attention?

The blog post underlines that algorithmic pricing is not a new phenomenon and has been deployed for decades by businesses in several sectors such as air travel, hospitality and retail. This is reflected in earlier research published by the CMA: a 2018 study of pricing algorithms; and a 2021 in-depth study on the potential adverse impact on competition and consumers linked to algorithms.

What is new is the marked increase in the sophistication and ubiquity of pricing algorithms. Modern algorithms can process granular, large-scale datasets in real-time, and are increasingly powered by cutting-edge large language models (LLMs). Businesses now have greater access than ever to powerful, low-cost predictive technology which can inform or automate commercial decisions including pricing.

Separately, the CMA published a paper on agentic AI which identifies the competition risk associated with autonomous agents which are utilised by companies to optimise pricing or commercial strategies. The paper notes that...