Antitrust Law Case Study

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Antitrust Law Suit, Union and Conspiracy allegations Uber Technologies Inc. continues to battle with law suits regarding several issues in violation of the antitrust law. The question “who are Uber’s drivers (Gersham, 2016)?” have yet to be answered (Gersham, 2016). In California the class action suit on Uber’s driver status is still in question, “employees or independent contractors (Gersham, 2016). While in Manhattan there is an unusual antitrust case where the federal court is trying to answer a simpler question, “what is Uber (Gersham, 2016)?” Customers complained that Uber is not a product or a service, but a conspiracy (Gersham, 2016). In 2014, Spencer Meyer and on the behalf of others affected by Uber’s price fixing algorithms is suing the defendant Travis Kalanick, who is the chief executive officer and co-founder of Uber Technologies, Inc (Spencer Meyer vs. Travis Kalanick, 2016). The allegations includes; a business plan that encourages fix prices among competitors while taking a cut of the profit, the classification of drivers as independent, and that they are only a technology …show more content…

,” in another statement she said. “We believe the settlement we have been able to negotiate...provides significant benefits—both monetary and non-monetary—that will improve the work lives of the drivers and justifies this compromise result (Webber, 2016).” Many believe that this was a smart move by Uber to give up a small concession of $100 million and avoid going to trial set for June 2016. Losing this case at trial would force Uber to recognize its drivers as employees, provide health insurance and auto expenses which would amount to billions of dollars and reduce their profit margin (Webber,

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