7 July 2025 – The Hague
The Netherlands Authority for Consumers and Markets (ACM) has launched a market investigation into computer-controlled pricing in the Dutch airline sector, aiming to uncover how algorithms shape the ticket prices consumers pay and what effects these practices have on consumer welfare.
ACM is currently seeking public input on its proposed research methods, with stakeholders—including consumers, airlines, academics, and civil society groups—invited to submit feedback until 31 July 2025.
Algorithms at the Core of Pricing Power
The investigation will focus on two forms of algorithm-driven pricing:
- Dynamic pricing, where ticket prices shift based on factors like demand, seasonality, and time of booking;
- Personalized pricing, where prices are tailored to individual consumers based on their profile or browsing behavior (such as student discounts or loyalty status).
While these techniques are not inherently illegal, ACM is responding to rising concerns across Europe that such practices may increasingly be used to extract the maximum willingness to pay from each consumer.
“The money you used to save and could spend on other things is no longer there,” said ACM Chairman Martijn Snoep. “On balance, you’re able to purchase fewer goods or services with the same budget.”
Why Focus on the Airline Sector?
The aviation industry, long known for its volatile and opaque pricing, is an ideal test case for this research. Airlines routinely use advanced pricing software to adjust fares in real time, and the market’s competitive but structured nature makes it suitable for data collection and analysis.
Moreover, aviation plays a key societal role, especially in leisure travel, making it a high-impact area for consumer protection.
Stakeholder Consultation: Open Until 31 July
ACM is now presenting its proposed research methodology and calling for input from stakeholders, specifically on:
- First-hand experiences with dynamic and personalized airline pricing;
- Knowledge about potential impacts on consumers, including affordability, fairness, and transparency;
- Suggestions to improve the research design or indicate data sources that might be helpful.
Input from businesses and organizations will be published on ACM’s website in the interest of transparency, while individual consumer responses will remain confidential.
The regulator plans to publish provisional findings and recommendations later this year, potentially setting the stage for new policy discussions around the use of algorithms in consumer-facing markets.
For more details or to submit feedback, stakeholders can access the consultation on ACM’s website.
