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Washington Journal of Law, Technology & Arts

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Abstract

Courts are increasingly seeing Sherman Act Section 1 claims that involve AI and other software algorithms at the center of alleged conspiracies to unreasonably restrain trade—often called algorithmic collusion claims. Adjudicating these claims can involve complex analyses of how algorithms interact with alleged conspiracies. However, most of the Section 1 case law stems from traditional agreements and can be hard to apply to algorithmic collusion scenarios. This Article provides a framework that judges and other adjudicators might use to analyze the role of an algorithm in an alleged conspiracy without becoming bogged down in technical details early in the case. The framework uses what this Article calls the Locked Room Analysis—which replaces complex technical analysis with simple analogies—to assist in determining whether the algorithm could constitute an agreement under Section 1 of the Sherman Act without needing to examine its underlying highly-technical functionality too early in the case.

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