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WhaTHellsgoingonhere

(5,252 posts)
77. It's anti-trust 101
Tue Apr 26, 2016, 05:59 AM
Apr 2016

WASHINGTON -- Ride-sharing that its drivers are independent contractors -- automotive entrepreneurs running their own businesses who have decided to link their operations with Uber.

Andrew Schmidt, a labor lawyer from Portland, Maine, has brought a new lawsuit on behalf of his client Spencer Meyer that could create a lot of trouble for Uber based on this distinction. Because if Uber's drivers are really independent contractors like the company claims, it could be breaking a whole different set of laws: The antitrust statutes that protect consumers from corporate collusion.

"Uber has a simple but illegal business plan: to fix prices among competitors and take a cut of the profits," the complaint reads.

If all of the company's drivers really are independent contractors, then they aren't allowed to secretly conspire over what to charge their customers, the lawsuit reasons. That would be price fixing, a basic antitrust law violation. Since its technology allows all of these independent contractors to set identical prices, Uber is a price fixing scheme that has to shut down and pay its customers for overcharging them, according to the suit.

"If Uber were to become a transportation company and employ drivers, it would be free to compete with other companies using its pricing algorithm," the complaint reads. "But Uber has refused to become a transportation company. Consequently, drivers using the app are independent firms, competing with each other for riders. They should compete on price … Instead, they have agreed to Kalanick’s scheme to fix prices among direct competitors using Uber’s pricing algorithm. Uber’s price fixing is classic anticompetitive behavior."

http://www.huffingtonpost.com/entry/legal-problem-could-crash-uber_us_5718d485e4b0479c59d714f6

Recommendations

0 members have recommended this reply (displayed in chronological order):

The entrenched players and the taxi industry are not Angels, and Uber/Lyft,are not cartoon villains. tritsofme Mar 2016 #1
No Progressive would defend Uber. The rest of you will find ways to rationalize their business model WhaTHellsgoingonhere Mar 2016 #3
Virtually any criticism you levy at Uber can be levied at regular yellow cabs. stevenleser Apr 2016 #30
Jesus Christ, Steve. Keep reading. WhaTHellsgoingonhere Apr 2016 #31
As I said, virtually. This is a local issue. nt stevenleser Apr 2016 #32
Every city seeks finger printing and criminal background checks. Most of these "regulations" are WhaTHellsgoingonhere Apr 2016 #33
And with all that, most taxi drivers are nastier than Uber drivers. Where are your regulations for stevenleser Apr 2016 #34
Take Uber. Customer service is beside the point. Level the playing field and compete! Read, Steve. WhaTHellsgoingonhere Apr 2016 #36
Nope, you arent addressing anything. You have an odd vendetta against Uber. nt stevenleser Apr 2016 #39
Democrats, Progressives should have a vendetta against the sharing economy. Both Hillary and Bernie WhaTHellsgoingonhere Apr 2016 #41
Steve! I have a vendetta against Wal-Mart and Amazon, too. Did you read about it. Yeah, pretty much WhaTHellsgoingonhere Apr 2016 #42
Steve! Wake up, we're losing you, maybe we lost you. Steve! Do you see the big picture I'm painting? WhaTHellsgoingonhere Apr 2016 #43
Steve! How often do you feel unsafe? I'm a big guy, too. Based on my experience, safety never WhaTHellsgoingonhere Apr 2016 #44
Steve! Do you have blind and handicapped people, too, or are they unique to Chicago? WhaTHellsgoingonhere Apr 2016 #45
Steve, remember when the Democratic Party stood for "fair competition" not you libertarian "free WhaTHellsgoingonhere Apr 2016 #37
yes, so when do you start doing that? nt stevenleser Apr 2016 #38
Doubtful! Spider Jerusalem Apr 2016 #70
The connection between RA and Uber ghostsinthemachine Mar 2016 #2
Thanks. Jeff Bezos, Microsoft, their billionaire class investors are impressive WhaTHellsgoingonhere Mar 2016 #4
You know you are shitty of you make taxi companies, of all things, look like the good guys. Odin2005 Mar 2016 #5
Whatever that means, I'll reply to it anyway. First, Uber isn't going away, so stop with your WhaTHellsgoingonhere Mar 2016 #6
Yeah, I know several women who refuse to use Uber for exactly that reason. Odin2005 Mar 2016 #7
There's room for both. People who prefer cabs tell cabbies they'd never use Uber because it's like WhaTHellsgoingonhere Mar 2016 #8
Don't be fooled by their slick marketing campaign. Make no mistake, Uber WhaTHellsgoingonhere Mar 2016 #9
CEO Travis Kalanick is said to be a big fan of libertarianism's favorite author, Ayn Rand WhaTHellsgoingonhere Mar 2016 #10
The whole Uber airport thing seems stupid to me SickOfTheOnePct Mar 2016 #11
I'm not sure where people get their information from. Most likely Uber. They have the PR machine WhaTHellsgoingonhere Mar 2016 #12
If someone picks me up at the airport SickOfTheOnePct Mar 2016 #13
Every city has its problems and not every city is a "cab city" like Chicago. But people have WhaTHellsgoingonhere Mar 2016 #14
If I need a ride SickOfTheOnePct Mar 2016 #15
Ah, there's that pet word, "choice!" WhaTHellsgoingonhere Mar 2016 #16
Cities.. sendero Apr 2016 #49
There's really only one reason Uber exists: greed WhaTHellsgoingonhere Apr 2016 #50
Sigh.. sendero Apr 2016 #51
That's not so. True, it's based on the Walmart and Amazon model, but cities and drivers are WhaTHellsgoingonhere Apr 2016 #52
And normal taxi companies are charities? TampaAnimusVortex Apr 2016 #53
Like I said, it's bigger than American short sightedness WhaTHellsgoingonhere Apr 2016 #54
You dont worry about my wallet. TampaAnimusVortex Apr 2016 #55
I know David Plouffe's tactic is to freak Uber customers out by promulgating propaganda that WhaTHellsgoingonhere Apr 2016 #56
"But fair competition requires a level playing field." TampaAnimusVortex Apr 2016 #57
Who do you think opened cities up to Uber? Those days you speak of are long gone. WhaTHellsgoingonhere Apr 2016 #58
Your close... TampaAnimusVortex Apr 2016 #59
That's exactly what cities are doing! Subsidies and no regulations = picking winners and losers WhaTHellsgoingonhere Apr 2016 #60
Whos the schill for some corporation? TampaAnimusVortex Apr 2016 #61
You Libertarian know nothings are reading straight from Atlas Shrugged. I see you're from Florida WhaTHellsgoingonhere Apr 2016 #62
You corporate crapitalists dont meet mine. TampaAnimusVortex Apr 2016 #63
I already outed myself. I'm a member of AFSCME Council 31. AFSCME's the largest trade union of WhaTHellsgoingonhere Apr 2016 #64
I hear GOP slugs saying the same thing... TampaAnimusVortex Apr 2016 #66
Hahahaha! Do you want to pick winners and losers or not? Do you want to make up shit or not? WhaTHellsgoingonhere Apr 2016 #67
Are you still here? TampaAnimusVortex Apr 2016 #68
Since illiteracy is your strong suit, let's try pictures. WhaTHellsgoingonhere Apr 2016 #69
And to put the cherry on top, Uber drivers, tired of being treated like shit by Uber, have teamed up WhaTHellsgoingonhere Apr 2016 #65
You may be sick of the one percent, but they sure love your opinions on this. kcr Mar 2016 #22
Unless the airport cops are watching FrodosPet Mar 2016 #21
Hillary accused Uber of "wage theft," leaves herself no wiggle room WhaTHellsgoingonhere Mar 2016 #17
Thomas Frank weighs in on Uber WhaTHellsgoingonhere Mar 2016 #18
So, did you download the Uber app yet? snooper2 Mar 2016 #19
Americans will sacrifice a lot in the future to save very little, now WhaTHellsgoingonhere Mar 2016 #20
Entitled, greedy, and behaving like the world is an Ayn Randian Utopia: Kalanick to face WhaTHellsgoingonhere Apr 2016 #23
Boston: Court rules Uber is a taxi service, will regulate accordingly WhaTHellsgoingonhere Apr 2016 #24
Those pesky regulations to level the playing field WhaTHellsgoingonhere Apr 2016 #25
yeah, of all people Tom should be more open to these critiques. I find that bbgrunt Apr 2016 #26
Superior service or safe haven for predators? WhaTHellsgoingonhere Apr 2016 #27
Do you know who your Uber driver is? WhaTHellsgoingonhere Apr 2016 #28
Unclear on a few things Prism Apr 2016 #29
Hi Prism. The driver is responsible for tickets. I'll give an example of what the article WhaTHellsgoingonhere Apr 2016 #35
Ohhh, ok. That makes a lot more sense. Thanks. Prism Apr 2016 #46
By the way, Prism, you're probably aware that all eyes are on California this June. Court will here WhaTHellsgoingonhere Apr 2016 #40
Thom Hartmann's screed about David Cameron family but not Uber WhaTHellsgoingonhere Apr 2016 #47
Court tacks on additional $10 million to February's $28 million fine for lying to customers about WhaTHellsgoingonhere Apr 2016 #48
I took an Uber in the suburbs last night, it was great. tritsofme Apr 2016 #71
You guys are LOL awesome! WhaTHellsgoingonhere Apr 2016 #72
Congrats! You got a newbie! Rideshare drivers tend to go bitter fast. FrodosPet Apr 2016 #78
I haven't had a bad experience yet. tritsofme Apr 2016 #79
If Uber has their way, you won't have a driver to tip FrodosPet Apr 2016 #80
Sounds great to me! I can't wait! tritsofme Apr 2016 #81
No steering wheel, no brakes. You don't drive the car, the car drives you. FrodosPet Apr 2016 #82
City of SF: If Uber refuses to recognize drivers as employees, they need business permits WhaTHellsgoingonhere Apr 2016 #73
Mayor James' Floor Speech Regarding KCMO Vehicle for Hire Ordinance WhaTHellsgoingonhere Apr 2016 #74
I won! I haven't heard Thom shill for Uber this week WhaTHellsgoingonhere Apr 2016 #75
They will likely never get it. This would be a good business for Mittens to get into. nt silvershadow Apr 2016 #76
It's anti-trust 101 WhaTHellsgoingonhere Apr 2016 #77
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