AI is helping gas stations collude to raise California fuel prices, lawsuit says
A federal lawsuit alleges gas station operators in California used AI software to illegally collude and raise fuel prices.Summary
A federal lawsuit filed Monday accuses gas station operators in California of using AI-powered software to illegally collude and raise fuel prices. The proposed class action lawsuit targets major gas station chains, including Marathon and Circle K, alleging they violated California's antitrust laws through the use of Kalibrate, a global fuel-pricing software system. The plaintiffs describe Kalibrate as the "central nervous system for a conspiracy to extinguish retail price competition among gas stations." The lawsuit claims the software helps "coordinate high prices" and discourages users from pricing gas lower than competitors, warning that doing so would trigger a "downward spiral." The lawsuit alleges that Kalibrate's algorithms and data analysis allowed gas station owners to effectively "see what everyone else is doing" and adjust their prices accordingly, creating a coordinated effort to keep prices high. The plaintiffs argue that this system effectively eliminates competition and allows gas station owners to maximize profits at the expense of consumers.
(Source：The Atlanta Journal-Constitution)