Artificial intelligence could soon allow powerful companies to charge each customer a different price for the same product, based on what they think each individual is willing to pay.
That is the warning from new research co-authored by competition law academic Dr Miroslava Marinova at the University of East London, which argues that the real risk is not simply higher prices, but hidden, personalised pricing that consumers cannot see or understand.
Traditionally, firms set prices in response to market conditions, such as demand, costs, or competition, meaning that all consumers are offered broadly the same price at a given moment.
A different model is now emerging. Algorithmic personalised pricing refers to the use of data-driven systems to adjust prices at the level of the individual consumer. The objective is not simply to respond to market demand, but to predict how likely a particular consumer is to accept a higher price rather than search elsewhere.
From standard pricing to personal pricing
AI systems can analyse data such as browsing history, location and purchase history to predict willingness to pay. That means the same product could be offered at different prices to different people at the same time.
This is not entirely new, but AI makes it far more precise and scalable, pushing markets closer to a world where everyone is quoted their own individual price.
The real issue is fairness
The study, co-authored with Dr Christian Bergqvist of the University of Copenhagen, finds that even if overall prices do not rise, consumers react strongly when they discover they are paying more than others without a clear reason. That sense of unfairness can reduce trust and affect behaviour.
Law Lecturer Dr Marinova said, “The concern is not just higher prices, but that people may be treated differently without knowing it. When pricing becomes invisible and personalised, fairness becomes a central issue.”
In competitive markets, consumers can switch to cheaper alternatives. But where a dominant firm is involved, the paper argues this kind of pricing could amount to an abuse of dominant position under EU and UK competition law, because it lacks transparency and justification.
A gap between technology and regulation
The paper argues that the law has the tools to respond but has not yet fully caught up with AI-driven pricing. As these systems become more widespread, regulators will face increasing pressure to decide whether personalised pricing crosses the line.
Dr Marinova, from the Royal Docks School of Business and Law, added: “The next step is for regulators to move from theory to action. As AI pricing becomes more sophisticated, the question is no longer whether this can happen, but how far we are willing to allow it to shape everyday markets before clear rules are put in place.”
Impact in the UK
Although the research focuses on EU law, the implications are the same in the UK. The legal framework on abuse of dominance is closely aligned. The UK Government has recently signalled that it is considering whether the Competition and Markets Authority should receive stronger powers to investigate algorithms across both its competition and consumer protection functions.
The research is published as Marinova, M. and Bergqvist, C. (2026), AI-enabled price discrimination as an exploitative abuse of dominance under EU competition law , in the Journal of Competition Law & Economics .
Journal of Competition Law & Economics
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AI-enabled price discrimination as an exploitative abuse of dominance under EU competition law
24-Mar-2026