The cost of plane tickets to Sicily and Sardinia in the sights of antitrust. The authority announced that it has launched an investigation into the use of pricing algorithms.
“For years, we read in a memo from Antitrust, airlines have adopted price identification systems that differentiate and adapt flight costs over time thanks to the use of algorithms and software for data processing. In recent years, the degree of automation and complexity of these systems due to both the exponential growth of the information that can be processed and technological evolution has increased significantly. In perspective, the use of artificial intelligence and machine learning techniques may enable the use of algorithms capable of self-learning. Development of new pricing criteria”.
The investigation will concern possible adverse effects on the market and supply conditions to consumers. Not just. It is also investigating “methods of communicating the prices of airline tickets and their various components to the public.”
But Antitrust action could go further. Thanks to the changes introduced by the Asset Decree, corrective measures can be introduced to companies in order to “recommend appropriate legislative/regulatory changes with the aim of eliminating distortions of competition or improving the functioning of markets”.
The investigation took place a few weeks before the Christmas holidays, when rates skyrocketed, Codacons reported. We are talking about 300 euros round trip for Sicily, and the situation is no better for those who have to reach Sardinia.
“The antitrust decision shows that we were right,” comments Adolfo Urso, Minister of Trade and Made in Italy. “This is proof that our decree, the rules in the Asset decree, are working. We have given antitrust the tools to take action, and that’s what the government should do.” The Minister notes that Antitrust can now “take action to protect users who have no market alternative in Sicily or Sardinia, as well as operators who need transparency to act in the best possible way” and adds: “A few days ago, the European Commissioner said, We have paved the way for Europe, as can be seen from what they said about the anomalies in flight prices not only in Italy but also in Europe in the last few months.
While companies were making unprecedented profits, fuel prices were falling, and flight ticket prices were increasing, revealing anomalies. “Europe has also noticed this, which means Italy has set a precedent.”
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Source: Today IT
Roy Brown is a renowned economist and author at The Nation View. He has a deep understanding of the global economy and its intricacies. He writes about a wide range of economic topics, including monetary policy, fiscal policy, international trade, and labor markets.
