Legal Regulation Of Price Discrimination In Personalized Pricing Algorithm

With the development of algorithm technology,platform operators in China begin to use algorithms to implement personalized pricing strategy.personalized pricing algorithm is the product of the development of Internet economy,which can help platform economy quickly understand the needs of consumers and provide targeted goods and services.it is also an efficient and convenient consumption experience for consumers,and the state encourages and supports its development.However,personalized pricing algorithm based on its hidden,commercial and other characteristics,will have some negative impact on market competition and consumer rights and interests,such as "big data kills the ripe",which is actually a kind of price discrimination.In the traditional market,price discrimination means that operators charge different prices to other operators with the same conditions without good reason,which is mainly to protect the interests of other operators in Article 14,paragraph 5,of the Price Law.However,"big data killing" in the Internet market damages the legitimate rights and interests of end consumers,so it is unable to protect the rights and interests of end consumers.In the Consumer Rights and interests Protection Law,the illegality of price discrimination is shown in that it harms consumers’rights to equality and the right to know,but there is a lack of targeted provisions on price discrimination itself.From the perspective of the Antimonopoly Law,the price discrimination of personalized pricing algorithm essentially belongs to the differential treatment stipulated in the Anti Monopoly Law.Article 17,paragraph 6 of the Antimonopoly Law stipulates: "there is no legitimate reason." the transaction counterpart here includes other operators and terminal consumers in terms of transaction price and other transaction conditions.Article 19 of the interim provisions on the Prohibition of abuse of dominant Market position issued by the State Administration of Market Supervision and Administration on June 26,2019,sets out the four manifestations of differential treatment,the meaning of "the same conditions" and the justifications of operators.Article 17 of the Antimonopoly Guide on platform economy issued by the Antimonopoly Commission of the State Council on February 7,2021 further defines the factors that should be considered in judging whether operators with a dominant market position implement differential treatment.It provides guidance on the determination of "the same conditions" and sets out the defense reasons for the implementation of differential treatment.This reflects that the antimonopoly law adheres to the principle of modesty in regulating personalized pricing algorithms.On this basis,this paper will discuss the legal regulation of price discrimination in personalized pricing algorithm.This paper analyzes the impact of personalized pricing algorithm on the market and consumers,and uses the principle of prudence and moderation to better solve the problem of price discrimination regulation caused by anti-monopoly law on personalized pricing algorithm.As a pricing strategy,personalized pricing itself is not illegal,so it is based on the abuse of personalized pricing algorithm technology by platform operators.The market bilateral envoy of the platform increases the difficulty of identifying the relevant market;relying on the Internet platform,it is also difficult to identify the market share of the platform due to the influence of indirect network externalities and diversified business models of the platform.in view of these difficulties,the author will analyze these difficulties and put forward the legal path to regulate the price discrimination of personalized pricing algorithm.Through the abovementioned carding of the relevant laws and regulations on price discrimination,we can see that the relevant legal provisions in this aspect in our country are relatively scattered and lack of a unified legal regulation system.This also leads to the problem of unclear subject,power and responsibility in the supervision of price discrimination in algorithm personalized pricing.In addition,consumers,as victims of price discrimination in personalized pricing algorithms,if operators are required to bear the liability for damages after price discrimination,consumers must bear the burden of proof according to the principle of "who claims,who gives proof".However,in the Internet market,the inequality of information between consumers and operators makes it difficult for consumers to provide strong evidence and often fall into the dilemma of proof.In recent years,especially since2020,phenomena such as "big data killing ripeness" and "choosing one from the two" have appeared frequently,which have aroused widespread concern.The state has carried out unprecedented antimonopoly regulatory action.There is an urgent need for legal regulation of this kind of monopoly behavior,but as mentioned earlier,in the field of price discrimination,the current relevant laws and regulations can not be effectively applied.On this basis,this paper discusses the legal regulation of price discrimination in personalized pricing algorithms.among many scattered legal provisions,the Anti Monopoly Law and the Antimonopoly Guide in the Field of platform economy have made relatively clear provisions on price discrimination,while personalized pricing algorithm price discrimination hinders market competition and harms the rights and interests of consumers.The legislative purpose of the Antimonopoly Law can more comprehensively protect the order of market competition and the rights and interests of consumers,but the market special envoy of the platform makes it more difficult to identify the relevant markets.Relying on the platform of the Internet,affected by the characteristics of indirect network externalities and the diversified business model of the platform,it is also difficult to identify the market share of the platform.The author advocates the establishment of a diversified legal regulation system with antimonopoly law as the core.And make appropriate optimization to the definition of the relevant market and the determination of market dominant position in the Internet market.Synthesize the Consumer Rights and interests Protection Law,the personal Information Protection Law,the Electronic Commerce Law and other laws,improve the system of consumers filing civil proceedings according to the antimonopoly law,and take the inversion of the burden of proof to form such a systematic and hierarchical regulation system to ensure the standardized operation of personalized pricing algorithm from all aspects of legislation,law enforcement and relief.The research ideas of this paper are as follows: the first part is an overview of personalized pricing algorithms and price discrimination.First of all,it expounds the essence and characteristics of the algorithm,in order to clarify the causes of price discrimination caused by the personalized pricing algorithm,and then,on the basis of this theory,defines the personalized pricing algorithm.it also expounds the concept and types of price discrimination caused by personalized pricing algorithm,and finally analyzes the positive effects of personalized pricing algorithm.The second part mainly analyzes the manifestation,negative effect and illegality of price discrimination in personalized pricing algorithm.First of all,it should be pointed out that personalized pricing algorithm will not necessarily lead to price discrimination,but also produce some positive effects.Secondly,combined with the case of price discrimination using personalized pricing in reality,this paper shows the scene of personalized pricing algorithm price discrimination in life,and then discusses the negative effects of personalized pricing algorithm implementation of price discrimination.Finally,it analyzes the illegality of the price discrimination behavior of the personalized pricing algorithm;the third part mainly analyzes the predicament and causes of the price discrimination of the personalized pricing algorithm regulated by the current laws of our country,and reveals the obstacles that will be encountered by the personalized pricing algorithm through antimonopoly laws and regulations.The fourth part,in view of the obstacles encountered by the personalized pricing algorithm of the antimonopoly law,analyzes the way out of regulating the price discrimination of the personalized pricing algorithm in the antimonopoly law.First of all,we should establish the dominant position of the antimonopoly law,optimize the method of defining the market and the determination of the market dominant position,and clearly refine the standard of differential treatment,which is the standard of abusing the dominant market position.Finally,we strengthen the legal regulation of personalized pricing algorithm price discrimination by integrating the protection of consumer personal information,algorithm transparency,consumer relief procedures and other aspects.From the point of view of strengthening the protection of consumers’rights and interests,strengthening data supervision and improving the transparency of algorithms,this paper provides suggestions for the legal regulation of personalized algorithm price discrimination.