The US Department of Justice (DOJ) is taking a closer look at Uber’s plans to buy Postmates, Uber disclosed in a regulatory filing. In the filing, Uber disclosed that the DOJ has issued a “second request” to both companies, temporarily halting the deal while the government gathers more information.
Under antitrust laws, companies must wait, typically 30 days, to close a potential deal after informing the government of their plans. If regulators believe the merger might harm competition, they can issue a second request to require the companies to provide more details about things like pricing, customers, and market share.
“If you’re at a second request, you’re often concerned about the deal,” Sam Weinstein, a law professor at Cardozo who previously worked in the DOJ’s antitrust division, told Business Insider.
“Some very small percentage of [merger] filings go to second request,” he said. Other antitrust lawyers confirmed to Business Insider that agencies file second requests in fewer than 10% of proposed deals.
That request effectively stops the clock on the Uber and Postmates deal until both companies “substantially comply” by turning over additional information to the DOJ, which Weinstein said “could be months and likely would be months.”
Want more news? Subscribe to CPI’s free daily newsletter for more headlines and updates on antitrust developments around the world.
Featured News
CVS Health Explores Potential Breakup Amid Investor Pressure: Report
Oct 3, 2024 by
CPI
DirecTV Acquires Dish TV, Creating 20 Million-Subscriber Powerhouse
Oct 3, 2024 by
CPI
South Korea Fines Kakao Mobility $54.8 Million for Anti-Competitive Practices
Oct 3, 2024 by
CPI
Google Offers Settlement in India’s Antitrust Case Regarding Smart TVs
Oct 3, 2024 by
CPI
Attorney Challenges NCAA’s $2.78 Billion Settlement in Landmark Antitrust Cases
Oct 3, 2024 by
nhoch@pymnts.com
Antitrust Mix by CPI
Antitrust Chronicle® – Refusal to Deal
Sep 27, 2024 by
CPI
Antitrust’s Refusal-to-Deal Doctrine: The Emperor Has No Clothes
Sep 27, 2024 by
Erik Hovenkamp
Why All Antitrust Claims are Refusal to Deal Claims and What that Means for Policy
Sep 27, 2024 by
Ramsi Woodcock
The Aspen Misadventure
Sep 27, 2024 by
Roger Blair & Holly P. Stidham
Refusal to Deal in Antitrust Law: Evolving Jurisprudence and Business Justifications in the Align Technology Case
Sep 27, 2024 by
Timothy Hsieh