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Antitrust Suit Against Uber Likely To Advance

By  |  April 26, 2020

A federal judge signaled on Friday, April 24, he will likely advance a lawsuit claiming Uber used monopoly power to drive a competitor out of business, reported Court House News. 

During a Zoom video court hearing, US Magistrate Judge Joseph Spero said he finds allegations that Uber uses its vast network of drivers and riders to stifle competition adequate to survive a motion to dismiss.

“Plaintiff has at least alleged Uber intends to decrease payments to drivers and in some cases has increased commissions and raised prices in various ways on the passenger side,” Spero said. “It seems to me those are sufficient allegations of market power.”

SC Innovation, formerly Sidecar Technologies, sued Uber in 2018, claiming the dominant ride-hailing app used anticompetitive practices to drive it out of business. Sidecar held between 10 to 15% of market share for app-based rides in San Francisco, Los Angeles, and Chicago before it shut down in 2015.

Spero previously dismissed Sidecar’s suit with leave to amend in January, finding the plaintiff failed to show Uber wields monopoly power as it shares the market with its only remaining competitor Lyft. In order to advance its lawsuit, Spero said Sidecar must show that “Uber can unilaterally raise market prices by restricting its output,” or reducing the number of rides offered.

In a 42-page amended complaint, Sidecar claims that Uber uses a vast trove of data to price discriminate, or charge riders different rates for the same type of rides, such as the company’s use of “surge pricing” when ride demand is high.

“There is no constraint on Uber’s ability to price at monopoly levels because of the network effects,” Sidecar attorney Lewis LeClair said at Friday’s hearing, referring to the impact of Uber’s large network of drivers and riders in suppressing competition.

Full Content: Court House News

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Zuckerberg Pushes for Settlement Ahead of Antitrust Trial Zuckerberg Pushes for Settlement Ahead of Antitrust Trial

Zuckerberg Pushes for Settlement Ahead of Antitrust Trial

By  |  April 2, 2025

Meta Platforms CEO Mark Zuckerberg is actively lobbying U.S. President Donald Trump and White House officials in an effort to reach a settlement that would prevent the company from facing an upcoming antitrust trial, according to the Wall Street Journal. The trial, scheduled for April 14, could have significant consequences for Meta, including the potential forced divestiture of its acquisitions, WhatsApp and Instagram.

Per the Wall Street Journal, Meta representatives have met with Trump and his senior advisers in recent weeks to discuss the Federal Trade Commission (FTC) lawsuit, which accuses the company of engaging in anticompetitive practices. Zuckerberg himself visited the White House on Wednesday, marking his third visit during Trump’s presidency. However, the Wall Street Journal notes that some White House aides have grown frustrated with Meta’s lobbying approach, viewing it as overly aggressive.

Meta spokesperson Andy Stone commented on the company’s engagement with policymakers, stating, “We regularly meet with policymakers to discuss issues impacting competitiveness, national security, and economic growth.” Meanwhile, White House Press Secretary Karoline Leavitt declined to provide a comment, and an FTC representative did not immediately respond to inquiries.

The FTC’s lawsuit argues that Facebook, now Meta, has maintained its dominance in the social networking space through a long-term strategy of eliminating competitive threats. According to the complaint, the company has engaged in anticompetitive conduct to sustain its monopoly power. While the FTC is an independent agency, Trump has sought to increase executive oversight over such entities, requiring them to submit significant regulations for White House review.

Related: FTC Targets Meta’s Market Power, Calls Zuckerberg to Testify

A person familiar with Trump’s thinking told the Wall Street Journal that the president has not yet made a decision on whether the administration will seek a settlement with Meta. Former FTC Chairman Jon Leibowitz, who served under both the Bush and Obama administrations, commented on the unusual nature of a company approaching the White House regarding an antitrust case. “It is unusual for companies involved in big antitrust lawsuits to go to the White House, but it has happened before,” Leibowitz said. However, he added that he has never seen a White House attempt to influence the FTC’s decision-making process, emphasizing the agency’s independence in such matters.

Zuckerberg’s efforts to engage with Trump follow a history of mixed relations between the two. According to the Wall Street Journal, Meta contributed $1 million to Trump’s inaugural fund and Zuckerberg made visits to Mar-a-Lago during the presidential transition. Additionally, in January, Meta settled a lawsuit Trump had filed against the company over its suspension of his social media accounts following the January 6, 2021, attack on the U.S. Capitol. The settlement resulted in a $25 million payment, with $22 million allocated to Trump’s presidential library fund.

As the April 14 trial approaches, it remains to be seen whether Meta’s lobbying efforts will yield a favorable resolution.

Source: The Wall Street Journal