Algorithmic pricing allows buyers and sellers to make better price matches. Why should that concern the federal Competition Bureau?

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The Competition Bureau says it wants to “respond swiftly and effectively” to algorithmic pricing, which it defined in a discussion paper last year as “the process of using automated algorithms to set or recommend prices for products or services, often in real time, based on a set of data inputs.” It went on to say that such pricing “is gaining momentum … worldwide, with reports of its use in sectors from hospitality to concert tickets to ridesharing.” Following up on its discussion paper, last week the bureau published a new report summarizing public feedback on algorithmic pricing.

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If the goal is to benefit consumers, the Competition Bureau’s “swift and effective” response to algorithmic pricing should be no response at all. One example of algorithmic pricing from the bureau’s paper is a ridesharing application that charges more during peak hours or when the weather is bad. Another example is a hotel that gives personalized offers based on customer type: a traveller who enjoys luxurious rooms would receive offers to upgrade, while a budget-conscious........

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