Competition Policy in the Age of Algorithms: Challenges for Indonesia

Abstract

The confluence of technological innovations in computation and communications has expanded the scope and increased the intensity of algorithmic applications in markets. Policymakers and regulators are increasingly concerned about tacit collusion among sellers using algorithmic pricing in concentrated markets driven by digital platforms with network effects. Indonesia’s competition regulators have expressed similar concerns and noted the need for a greater understanding of the impact of algorithmic pricing, including the detection of anti-competitive business practices.