Judges Signal Openness to AI Collusion Claims Against Hotels (1)

A panel of Third Circuit judges appeared receptive to plaintiffs’ claims that several Atlantic City hotels colluded to fix room prices via an algorithm, as part of a case with consequences for algorithmic pricing.

“They shared competitively sensitive information; they knew their competitors were doing the same thing,” Judge L. Felipe Restrepo said during oral arguments Wednesday.

The question in the case is whether the plaintiffs plausibly alleged that Atlantic City hotel-casinos delegated independent pricing decisions to the same third-party algorithm, which used their confidential information to generate prices that the hotels adopted.

The US Court of Appeals for the ...