On the Illegality and Regulation of Algorithmic Price Discrimination in China's Digital Economy

Abstract

The legal issue of algorithmic price discrimination sparked by the in-depth use of big data and algorithm techniques has emerged as a significant concern in the development of China's digital economy. Although Chinese law has implemented many regulations on the collection and protection of personal information, data security and governance, as well as on price discrimination, instances of algorithmic price discrimination have arisen in judicial practice. The legal issue surrounding algorithmic price discrimination has not yet been fully resolved. Legal studies in China on this issue mainly uses "big data killing" or "algorithmic price discrimination" to define it. Regarding the legal classification and regulation of algorithmic price discrimination: the Anti-Monopoly Law's regulatory measures are limited from a competition law standpoint. Instead, Anti-Unfair Competition Law provides a more appropriate framework. As for civil law, the question of whether the algorithmic price discrimination qualifies as a civil tort still requires discussion; nevertheless, it satisfies all the constitutive elements of fraud in Chinese civil law.