United Kingdom: Consultation closed on the detrimental effect of algorithms on competition and consumers

The Competition and Markets Authority (CMA) closed its consultation on March 16, 2021. The consultation was opened on January 19 2021 and was based on a research paper concerning algorithms and their effect on consumers and competition in an effort to improve their own Analysing Algorithms programme. The CMA thereby sought feedback on a variety of questions including the accurateness of the potential harms set out by algorithms described in the research paper, the likeliness and impact of said harms, as well as any techniques that should be regulated more closely. Furthermore, it also asks for views on the role of the CMA as a regulator in the said area and the approaches it should attain in combatting the harm created by algorithms. In the paper, the CMA identifies several ways on how algorithms can harm consumers and negatively impact competition intentionally or unintentionally, such as direct harm of consumers, exclusionary practices by firms as well as algorithmic collusion.