Antitrust on Dynamic Pricing Algorithms in E-Commerce: A Normative Legal Analysis

Fitrotin Azizah; Rahayu Mardikaningsih; Elly Christanty Gautama; Sulani Sulani; Siti Nur Halizah

Authors

Fitrotin Azizah Universitas Sunan Giri Surabaya
Rahayu Mardikaningsih Universitas Sunan Giri Surabaya
Elly Christanty Gautama Universitas Sunan Giri Surabaya
Sulani Sulani Universitas Sunan Giri Surabaya
Siti Nur Halizah Universitas Sunan Giri Surabaya

Keywords:

antitrust; pricing algorithm; dynamic pricing; e-commerce; KPPU; price agreement; marketplace

Abstract

This article examines automatic pricing (dynamic pricing) in e-commerce from a competition law perspective, focusing on the legal qualification of algorithm-based pricing behavior and the liability of business actors for system outputs that have the potential to suppress competition. The research uses a normative legal method through qualitative literature study and thematic synthesis of primary legal materials and academic literature. The analysis is based on Law Number 5 of 1999, specifically the prohibition of price-fixing agreements, the prohibition of marketing arrangements that affect prices, and the prohibition of exclusive actions that could lead to monopolistic practices or unfair business competition. The discussion is supplemented by the ITE Law and its amendments, PP 71/2019, and PP 80/2019 to assess system accountability, traceability of electronic evidence, and PMSE implementation obligations, as well as Law 8/1999 for aspects of price transparency and transaction certainty. The findings indicate that independent dynamic pricing can be lawful, as long as it is not established through agreements, facilitation, or parameter alignment. The risk of violations increases when algorithms are used to standardize pricing benchmarks, orchestrate promotions, or conduct selective price reductions that weaken competitors. Primary responsibility remains with businesses, while technology vendors and relevant marketplaces are liable if they are actively involved in the design, configuration, or incentives that drive standardization.

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