Third Circuit Revives Hub-and-Spoke Claims Over Shared Pricing Algorithms
Antitrust counsel for any company using third-party pricing software must reassess exposure after the Third Circuit revived parallel claims against competitors sharing a common algorithm.
In Cornish-Adebiyi, the Third Circuit reversed dismissal of a hub-and-spoke price-fixing action targeting competitors that used the same third-party pricing software. The court held that allegations of parallel adoption, knowledge of rivals' use, and software-driven price alignment can plausibly establish a conspiracy under Section 1 of the Sherman Act, even without direct competitor communications. The decision lowers the pleading bar for algorithmic coordination cases and signals that vendors of pricing, wage, and dynamic-pricing tools may face treble-damages exposure. Companies should audit their use of shared pricing platforms, review vendor agreements for information-sharing provisions, and evaluate whether competitor data flows could support an inference of concerted action. Litigation risk now extends beyond direct competitors to the software providers themselves.