Conceptualising personalised pricing under article 102 TFEU

Abstract

The rapid development of algorithms and big data has revolutionized the digital economy, introducing novel challenges for European Union (EU) competition law. Personalised pricing, an advanced technique of price discrimination enabled by extensive data collection and advanced algorithms, allows undertakings to tailor prices according to individual consumers' willingness to pay. While this practice can enhance market efficiency and consumer welfare, it raises significant concerns regarding unfair pricing and market distortions. This research investigates how personalised pricing exacerbates the anti-competitive effects of predatory and excessive pricing, despite not necessitating a new regulation. It demonstrates that personalised pricing transforms predatory pricing into a streamlined, single-stage process and complicates excessive pricing dynamics by enabling precise exploitation of consumer data. This practice not only creates significant barriers to market entry but also disrupts market fairness. Focusing on cases involving undertakings such as Uber, Tinder, and Wish, this study examines how personalised pricing operates as both an exclusionary and exploitative mechanism under Article 102 TFEU. It argues that rather than being treated as a new type of violation under Article 102 TFEU, personalised pricing should be evaluated within the established frameworks of predatory and excessive pricing. The thesis shows that existing legal mechanisms, particularly Article 9 of Regulation 1/2003, are sufficiently equipped to address the adverse effects of personalised pricing while preserving its potential benefits. By integrating economic and legal analyses, this study offers key insights for policymakers and regulatory authorities, emphasizing the need to balance innovation with fair competition to ensure that personalised pricing practices contribute positively to market dynamics and consumer welfare. Ultimately, this thesis advances our understanding of personalised pricing within the scope of EU competition law, offering practical recommendations to address its complexities and promote a fairer digital marketplace.