AI BriefingGas Companies Sued Over Alleged AI Algorithm Price Collusion
Key point
A lawsuit has been filed in California against major gas chains and a tech company, alleging they used AI software to collude on fuel prices.
Details
California drivers have filed a federal lawsuit against major gas chains including Walmart and 7-Eleven, as well as tech company Kalibrate. They allege that the companies committed collusion by using AI software to artificially keep gas prices high.
This lawsuit is expected to serve as an important test case for California's newest antitrust law, which treats algorithm-based coordinated pricing as an antitrust violation. Currently, the average price of gasoline in California reaches $5.46 per gallon, and regulatory scrutiny of companies' algorithm-based pricing practices is intensifying.
Investigations into algorithmic and surveillance pricing are also underway across various industries including real estate, and this practice is being cited as one of the major causes behind rising consumer living costs.
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