Gas giants raise prices with AI in another hit to living costs, lawsuit says
A federal lawsuit alleges gas companies in California are using AI-powered software to collude and keep prices high.Summary
A federal lawsuit filed in California accuses roughly a dozen companies, including Walmart and 7-Eleven, of using AI-powered software to fix gas prices. The lawsuit alleges that the software, provided by Kalibrate, encourages gas stations to upload private price data and recommends real-time pricing strategies to maximize profits. The legal action comes amid growing concerns about how technology, including AI, contributes to the high cost of living. California's antitrust law, updated last year, now explicitly prohibits companies from using algorithmic pricing software that leads to a common rate, even without direct communication between competitors. This case follows other legal actions against companies like RealPage and Instacart for similar algorithmic pricing practices. The lawsuit highlights a shift in how antitrust violations can occur, moving from secret backroom deals to sophisticated digital mechanisms.
(Source：Los Angeles Times)