Preventing Algorithmic Collusion Act of 2025

# Preventing Algorithmic Collusion Act of 2025 - Summary **What the Bill Would Do** This bill would make it illegal for competing companies to use artificial intelligence or algorithms to coordinate prices, output, or other business practices—even if they don't directly communicate with each other. The law would treat algorithmic coordination the same way antitrust laws currently treat traditional collusion (where competitors illegally agree to fix prices or limit competition). It would allow the federal government to pursue legal action against companies that use algorithms to effectively work together to reduce competition or raise prices for consumers. **Who It Affects and Key Provisions** The bill primarily targets large companies in industries like technology, retail, and e-commerce that use sophisticated algorithms and AI systems to make business decisions.

It would affect consumers by potentially preventing coordinated price increases and anti-competitive behavior. The legislation grants enforcement authority to the Federal Trade Commission and Department of Justice to investigate and prosecute algorithmic collusion, with penalties similar to other antitrust violations. **Current Status** As of now (119th Congress), the bill is in committee and has not been voted on or passed. It was introduced by Senator Amy Klobuchar (D-Minnesota), who focuses on antitrust issues.