Oct. 17 at 9:58 PM
California has taken a groundbreaking step in regulating AI-driven pricing by amending its primary antitrust law to explicitly prohibit the use of shared pricing algorithms that coordinate competitor pricing. The move comes as other states pursue similar legislation amid an uncertain legal landscape.
The legislation, which takes effect Jan. 1, 2026, amends the state's Cartwright Act to make it unlawful for businesses to use or distribute a "common pricing algorithm" as part of coordinated efforts to restrain trade.
The law defines "common pricing algorithm" broadly as "any methodology, including a computer, software, or other technology, used by two or more persons, that uses competitor data to recommend, align, stabilize, set, or otherwise include a price or commercial term."
$MAR $HLT $WH $JETS $SABR