Hotel Price-Fixing Appeal Could Reshare Algorithmic Pricing Precedent; DOJ, Advocacy Groups Push for Per Se Scrutiny

Antitrust attorney Kenneth Racowski was interviewed for an article published by The Capitol Forum recapping a class action lawsuit against Las Vegas hotels whose outcome could influence the future of algorithmic pricing regulations. Gibson v. Cendyn is currently on appeal before the U.S. Court of Appeals for the Ninth Circuit after a district court judge dismissed it, finding the defendant hotels did not directly exchange confidential information and started using the pricing algorithm at different points, meaning the facts of the case did not fit the classic hub-and-spoke conspiracy argument. Mr. Racowski zeroed in on the importance of demonstrating a concrete exchange of information when alleging anticompetitive behavior.

"The courts have said if you're going to use information exchange to support your price-fixing theory, there must be pleading of confidential information exchange among competitors," he said.

READ: Hotel Price-Fixing Appeal Could Reshare Algorithmic Pricing Precedent; DOJ, Advocacy Groups Push for Per Se Scrutiny (Subscription required)