Algorithmic pricing has frequently raised concerns regarding potential violations of competition laws related to price fixing. On August 15, 2025, the U.S. Court of Appeals for the Ninth Circuit dismissed a class action lawsuit concerning algorithmic pricing. In the case of Gibson v. Cendyn Group LLC, the appeals court upheld a lower court's ruling, stating that companies utilizing similar pricing algorithms did not violate Section 1 of the Sherman Antitrust Act, despite the support of the U.S. Department of Justice for the plaintiffs. This dismissal indicates a prevailing skepticism about the idea that algorithmic AI technology inherently results in antitrust violations.
Gibson v Cendyn: Algorithmic Pricing
Case Study
