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News

Antitrust & Trade Reg.,
Corporate,
Civil Litigation

Jul. 12, 2019

Uber seeks dismissal of antitrust suit by single competitor

Uber seeks dismissal of federal anti-competition lawsuit filed by now-defunct ride-hailing services app.

Ride-hailing giant Uber wants a federal judge to throw out Sidecar's lawsuit accusing it of anti-competitive practices and predatory pricing on the grounds that antitrust laws are not written to benefit a single competitor.

The now-defunct ride-hailing service company, Sidecar Innovation Inc., sued Uber last year, claiming Uber maintained a monopoly by stealing Sidecar's business model, engaging in predatory pricing and intentionally sustaining losses to force competitors out of the market. SC Innovations, Inc. v Uber Technologies, Inc. 3:18-CV-07440 (N.D. Cal., filed Dec. 11, 2018).

The suit came three years after Sidecar went out of business and sold its operating assets to General Motors in 2015.

Uber's motion seeking dismissal, filed Wednesday, contends Sidecar's complaint "presents a classic case of alleged injury to a competitor rather than to competition." Sidecar hasn't competed with Uber nor engaged in business activities since it became defunct, Uber argued.

"Far more is required than the grievances of a single competitor since the antitrust laws are for the benefit of competition, not competitors," the motion said. Sidecar, however, "seeks nothing other than money for itself," the motion added.

The motion also questions why Lyft or even taxicab services aren't being blamed as both businesses, along with Sidecar, were already in operation long before Uber launched its business in 2013.

Furthermore, Uber is exempt from the Unfair Practices Act as the act doesn't apply to services for which rates are established by the state's Public Utilities Commission, the motion said.

Neither counsel for Sidecar nor Uber returned requests for comment Thursday.

-- Gina Kim

#353489

Gina Kim

Daily Journal Staff Writer
gina_kim@dailyjournal.com

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