AI fuel-pricing software accused of enabling price-fixing

What happened

A class action lawsuit filed Monday accuses gas station operators including Marathon, Circle K, BP, Speedway, EG America, Walmart, and Albertsons of using Kalibrate software to illegally coordinate high prices in California. The lawsuit alleges the software helps stations avoid competing with each other and discourages lower pricing, calling it the 'central nervous system for a conspiracy to extinguish retail price competition.'

Why it matters

California already has among the nation's highest gas prices. The lawsuit claims research into algorithmic fuel-pricing software found average price increases of about 6 cents per gallon, rising to as much as 30 cents per gallon in markets where many stations use the technology—meaning a single cent increase at the pump drains $134 million（約210億円） from California drivers' wallets every year across the state.

What to watch

The lawsuit seeks to represent California drivers who bought gas at stations using Kalibrate software since June 2022. Kalibrate is headquartered in Manchester, England, and operates in more than 70 countries. This follows similar lawsuits against RealPage (accused of helping landlords drive up rent) and Agri Stats (accused of helping the meatpacking industry inflate grocery prices), both of which the Department of Justice settled in the past year.