Illegal Pricing Algorithms

On June 6, 2015, the U.S. Department of Justice brought the first-ever online market-place prosecution against a price-fixing cartel. One of the special features of the case was that prices were set by algorithms. Topkins and his competitors designed and shared dynamic pricing algorithms that were programmed to act in conformity with their agreement to set coordinated prices for posters sold online. They were found to engage in an illegal cartel. Following the case, the Assistant Attorney General stated that "[w]e will not tolerate anticompetitive conduct, [even if] it occurs...over the Internet using complex pricing algorithms."