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Bill

SB 384

Preventing Algorithmic Price Fixing Act: prohibition on certain price-setting algorithm uses.

2025-2026 Regular Session Introduced by Aisha Wahab

California bill prohibits businesses from using pricing algorithms that coordinate with competitors to fix prices, extending antitrust law to automated systems.

August 29 hearing: Held in committee and under submission.
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Bill Summary · SB 384

Legislative bill overview

SB 384 prohibits businesses from using pricing algorithms that coordinate prices with competitors or enable price fixing, treating algorithmic collusion similarly to traditional antitrust violations. The bill aims to close a legal gap where companies can use automated systems to achieve anticompetitive price coordination without explicit communication.

Why is this important

As e-commerce and automated pricing systems proliferate, competitors could theoretically use algorithms to maintain artificially high prices without direct negotiation, harming consumers. This bill addresses a modern enforcement challenge in antitrust law—distinguishing between independent algorithm use and coordinated algorithmic price fixing.

Potential points of contention

  • Business compliance burden: Companies may struggle to distinguish between lawful independent algorithmic pricing and illegal coordination, creating compliance costs and litigation risk
  • Innovation concerns: Opponents argue overly broad restrictions could chill development of legitimate pricing tools and AI-driven supply chain optimization
  • Enforcement clarity: The bill's language around what constitutes "coordinated" algorithmic pricing versus coincidental price similarities may be difficult for regulators and courts to apply consistently

Compiled from official sources — confirm details with the bill’s official record.

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