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A pair of new lawsuits allege that Uber and Lyft misled regulators regarding their ridesharing operations when it was in a race to make its app cheaper.
The companies were accused of illegally charging an exorbitant price for each ride in the U.S. that the ridesharing service claimed would pay them more money if it became a dominant presence. The lawsuits, filed by plaintiffs, accuse Uber and Lyft of violating federal antitrust laws when they and their competitors sold a service that was priced artificially low.
Uber said it had hired federal law enforcement agencies. In the new lawsuit, co-lead attorney Adam Silverstein argues that the ride-haring service’s use of data analytics was excessive, and that Uber must be held responsible for the data it collects.
The lawsuits accuse Uber and Lyft of breaking federal antitrust laws when they sold the ride-haring service, as part of an effort to raise revenue to cover its costs.
The lawsuits claim that Uber and Lyft’s tactics in raising revenue by selling the service to other ride-haring services violated Section 230 of the 1934 antitrust law and violated U.S. antitrust laws because they sold data analytics to third parties that were then responsible for those data. While Uber has declined to be asked to comment on the lawsuits, an Uber spokesperson said that the company has no business dealing with data analytics.
The lawsuits allege that the ride-haring service’s operations were subject to two separate and sometimes conflicting regulatory actions before they closed in early 2014 due to various concerns about Uber’s price. The first lawsuit relates to the price app as advertised by Uber at the beginning of 2014. The second alleges that Uber and Lyft unlawfully withheld data from regulators in 2013 under a provision of Section 230, which allows states to withhold data only if the service is operated under an interstate or foreign law preventing other carriers from doing so.
Last month during Uber’s final round of negotiations with regulators, regulators failed to specify whether the deal was still in the works.
U.S. District Judge Amy Berman ruled against the ride-haring service on Monday, which had sought 10 million in penalties and fees. The 10 million settlement would be in addition to the fines, money and damages the companies would pay Uber, Lyft and other providers of ride
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