ACM demands transparency over airline price algorithms

The Netherlands Authority for Consumers and Markets (ACM) is calling for greater transparency regarding the use of price algorithms. Following an investigation into the aviation sector, the regulator found that between 30 and 35 different prices can be offered for a single seat on the same flight.

These computer-driven systems determine prices based on various factors, such as supply, demand, and competitor pricing. The ACM noted that one in three airline tickets can be more than 40 percent more expensive than the average price. This volatility causes significant stress and uncertainty for consumers, who often spend excessive time attempting to find the best deals.

Martijn Snoep, chairman of the ACM, stated that the findings in aviation are relevant to other sectors, such as webshops and gas stations, which also utilize similar techniques. The regulator expects the use of AI and increased data availability to lead to more frequent use of computer-driven pricing. The ACM aims to spark a societal debate and demands that companies be open about which elements influence final prices to restore consumer trust.