The Justice Department joined by the Federal Trade Commission (FTC) has filed a statement of interest in a case concerning hotel room algorithmic price-fixing. The case, Cornish-Adebiyi v. Caesars Entertainment, brings to light the issue of collusion in pricing through the use of algorithms.

According to the statement, competitors in the hotel industry cannot collude on room pricing, whether through direct communication or by utilizing algorithms that facilitate anti-competitive practices. The Agencies emphasize that the use of algorithms that recommend prices to multiple competing hotels can hinder consumers' ability to find the best rates.

The statement highlights two key aspects of competition law. Firstly, it clarifies that plaintiffs do not need to prove direct communications between competitors to allege an agreement under the Sherman Act, especially when an algorithm provider is involved in coordinating pricing strategies. Secondly, the statement emphasizes that shared pricing recommendations or algorithms, even with some pricing discretion retained by co-conspirators, are still considered unlawful under antitrust laws.

The Agencies express a strong commitment to safeguarding consumers from algorithmic collusion, as evidenced by their involvement in similar cases in different sectors like residential housing and real estate. The Justice Department's Antitrust Division has previously addressed cases related to algorithmic price-fixing and continues to pursue allegations of anti-competitive behavior across various industries.

The collaborative effort between the Justice Department and the FTC in addressing the complexities of algorithmic price-fixing reflects a proactive approach towards upholding fair competition and protecting consumer interests.