Update On Algorithmic Collusion: Ninth Circuit Gives Guidance As Lower Courts Confront New Cases, Settlements, And Legislation Change Landscape

Alex Okuliar, Rob Manoso, and Tyler Phelps published an article in Mealey's Litigation Report that discussed the Ninth Circuit’s recent decision in Gibson v. Cendyn Group, LLC, which addressed the extent to which the adoption of a common revenue-management software system by competing Las Vegas casino-hotels could be found to be a violation of Section 1 of the Sherman Act. The authors also noted recent developments in other major cases and legislation that may shape future litigation.

The authors wrote, "Results from these early cases demonstrate that whether a pricing algorithm violates antitrust law, more often than not, will be based on what information is exchanged, the purpose for it, how it is used, and its effects on pricing and inventory."

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