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8 - EU Competition Law and Personalized Pricing

from Part II - EU Law Perspectives on Price Personalization

Published online by Cambridge University Press:  20 March 2025

By
Valeria Caforio  and
Mariateresa Maggiolino
Edited by
Fabrizio Esposito  and
Mateusz Grochowski
Fabrizio Esposito
Affiliation:
NOVA Law School (Portugal)
Mateusz Grochowski
Affiliation:
Tulane University, Louisiana
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Summary

Over the years, businesses have been trying to identify ways to segment their customer base and engage in price discrimination. The objective is to provide different prices to different consumers based on a range of factors, such as age, location, income, and other demographic characteristics, which are considered capable of revealing the reserve price of buyers. With the increasing use of digital technology, this practice has become even more accurate and sophisticated, leading to the emergence of personalized pricing. This pricing approach utilizes advanced algorithms and data analytics to approximate the exact willingness to pay of each purchaser with greater precision.

Keywords

unfair competitionconsumer surplusmonopolyprivacyprice personalization
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The Cambridge Handbook of Algorithmic Price Personalization and the Law , pp. 192 - 216
Publisher: Cambridge University Press
Print publication year: 2025

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