The Justice Department’s Crackdown on Anticompetitive Uses of AI

The US Department of Justice is intensifying its efforts to regulate the use of artificial intelligence, particularly in cases involving price-fixing and anticompetitive practices.

Investigation into RealPage

Since 2022, the Justice Department has been scrutinizing RealPage for utilizing AI algorithms to artificially inflate prices. This investigation is part of the broader antitrust crackdown initiated by the Biden administration against major players in the tech industry.

Anticompetitive Practices

The Department of Justice is targeting practices such as setting prices above market rates, colluding with competitors, and engaging in exclusionary deals, whether orchestrated by humans or algorithms. The agency asserts that automating anticompetitive schemes through AI does not diminish their anticompetitive nature.

Impact on Antitrust Litigation

The use of AI in antitrust cases has raised concerns within the Justice Department, as algorithms can process vast amounts of data and potentially facilitate price-fixing activities. Assistant Attorney General Jonathan Kanter emphasized that individuals and corporations utilizing AI for price-fixing will be held accountable.

Regulatory Outlook

Stricter regulations surrounding the use of AI and harsher penalties for its misuse are likely on the horizon. Deputy Attorney General Lisa Monaco highlighted that compliance officers need to be vigilant in ensuring companies adhere to legal standards, especially concerning the misuse of AI in white-collar crime.

The Justice Department's increased focus on AI signals a shift towards imposing more severe consequences on entities that exploit AI technologies for anticompetitive purposes. As the use of AI continues to evolve, regulatory frameworks will need to adapt to address the challenges posed by algorithm-driven misconduct.

Source: Business Insider

—————————————————————————————————————————————
By: lvaranasi@insider.com (Lakshmi Varanasi)
Title: The Justice Department’s Crackdown on Anticompetitive Uses of AI
Sourced From: www.businessinsider.com/ai-price-fixing-doj-justice-department-investigation-realpage-rental-market-2024-6
Published Date: Sat, 22 Jun 2024 19:33:14 +0000