Gibson v Cendyn: Algorithmic Pricing

Case Study

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.