Startup Settles Antitrust Case with Major US Alcohol Distributor

According to Reuters, Provi announced on Wednesday that it resolved the case in federal court in Chicago. As part of the settlement, Provi’s marketplace will now be recognized as an approved ordering platform for Southern Glazer’s products. The agreement concludes a long-running legal battle that began in 2022 when Provi accused the country’s largest wine and spirits distributor of limiting competition.

Provi’s original complaint alleged that Southern Glazer’s and another major distributor, Republic National Distributing Company, interfered with its efforts to build a “one-stop-shop” connecting alcohol buyers, distributors, and suppliers. Per Reuters, the lawsuit claimed that the two distributors, which operate their own rival e-commerce systems, violated antitrust law by blocking Provi-facilitated orders, leading to lost sales and higher prices across the industry.

Read more: FTC Files Suit Against Liquor Giant Southern Glazer’s Over Discount Disparities

The Chicago-based startup had argued that its platform’s rapid growth posed a threat to the distributors’ dominance in the U.S. alcohol distribution network. In July, Provi reached a separate settlement with Republic National, describing the resolution as a mutually beneficial collaboration. Both Republic and Southern Glazer’s have consistently denied any wrongdoing.

Southern Glazer’s and Republic previously sought to dismiss the case, asserting that Provi’s allegations did not meet the legal standards required for an antitrust claim. However, according to Reuters, U.S. District Judge Nancy Maldonado ruled last year that Provi had provided sufficient evidence to suggest “direct evidence of defendants’ monopoly power,” allowing the case to proceed.

The matter was formally filed as Tiz Inc. v. Southern Glazer’s Wine and Spirits LLC et al, in the U.S. District Court for the Northern District of Illinois, case number 1:22-cv-01648.

Source: Reuters