Colluding Algorithms
Auto rickshaw drivers often charge more than the metered fare in response to market dynamics, similar to surge pricing in ride-hailing apps. This raises competition law concerns, as algorithm-driven pricing could lead to unintentional collusion, setting higher equilibrium prices. The challenge for regulators is to adapt antitrust laws to address potential collusion by autonomous algorithms, which can independently develop strategies for profit maximization, including tacit collusion, without overt intent or agreement.