Enhanced Digitalisation and Competition Law Enforcement in Slovakia

Abstract

Abstract Digitalisation is a challenge from the regulatory point of view. Competition law, as a special type of regulation, is no exception to this. The article explores the risks of digitalisation, especially the ones related to the enhanced use of pricing algorithms. In theory, pricing algorithms are not easily assessed from the perspective of competition law, let alone its application in practice. The prohibition of anticompetitive agreements (pursuant to Article 101 of the Treaty on Functioning of the European Union (TFEU)) is applied with certain difficulty to agreements created by using pricing algorithms. This is an unfortunate situation, as horizontal agreements represent one of the worst infringements of EU competition law, including price cartels or bid rigging. Apart from presenting a theoretical background, the article dives into the practice of the Antimonopoly Office of the Slovak Republic (AMO) in order to assess which practical issues the AMO might face when applying the theoretical concepts. In sum, the article asks from a theoretical perspective which issues of competition law have been introduced (or deepened) by the enhanced digitalisation, looking in particular to pricing algorithms. On top of that, the article explores the issues which may be encountered in practice, taking the Slovak jurisdiction as the example. The willingness and feasibility of the AMO to enforce digital issues such as pricing algorithms is assessed based on the previous acts of the AMO as well as the new Act on Protection of Competition, adopted by the Slovak parliament on 11 May 2021.