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Hubs And Spokes Arrangement Through Algorithmic Collusion – Economic And Legal Implications




Abhishek Rudra, LL.M., (Corporate Laws), Chanakya National Law University, Patna.

ABSTRACT

An algorithm is an application of reasoning by artificial intelligence for the finding of a probable solution to a problem. Algorithms are relied upon for the cost and efficiency benefits attributed to them. In the present day, algorithms contribute to an enterprise in multiple ways in the conduct of business by controlling production, collecting market data and self-learning by monitoring market conditions. This form of conspiracy refers to an agreement between either vertical or horizontal players (spokes) via the medium of a platform (hub), thereby being a sort of indirect agreement. It is the use of the hub that becomes the subject of agreement. The main problem is that though we are aware that the Algorithms "may" pose a problem to the competition in the market, the watchdogs of competition may not fare so well in dealing with the posed problems. The regulators are yet to understand the amplitude of data collection and misuse, thus calling for greater research and interpretation of emerging laws such as data protection, privacy etc. The paper analyses the scenario that brings all controversies and myriad views to light and brings the problem to light in detail. It further tests these problems on the anvil of economic, jurisprudential and regulatory perspective.

Keywords: hub and spokes, competition, regulation, jurisprudence, economy


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Indian Journal of Law and Legal Research

Abbreviation: IJLLR

ISSN: 2582-8878

Website: www.ijllr.com

Accessibility: Open Access

License: Creative Commons 4.0

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