Competing businesses that use algorithms to set prices will be at greater risk for violating California’s antitrust laws under legislation Gov. Gavin Newsom signed Monday.
Consumer advocates backed the bill (AB 325) that makes it illegal for a business to “coerce” another company to set prices for similar products based on recommendations from an algorithm if it uses competitor data.
The measure covers the sharing of public and non-public data, but businesses using their own or proprietary pricing software would be unaffected, according to an analysis by legislative staff.
Supporters said the new law cracks down on a ...