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The U.S. Federal Trade Commission (FTC) has launched an investigation into whether Uber Technologies Inc. and Lyft Inc. illegally coordinated to limit driver pay in New York City, according to Bloomberg. The inquiry comes in response to an agreement the companies made with city officials in July 2024 regarding driver compensation.
FTC Issues Information Demands
Per Bloomberg, the FTC sent civil investigative demands—comparable to subpoenas—to both Uber and Lyft in the closing days of the Biden administration. These demands require the companies to submit information within 30 days about the specifics of their agreement with New York City officials on driver pay.
Uber spokesperson Josh Gold confirmed that the company received the demand from the FTC on January 21. The request was signed by former FTC Chair Lina Khan before she stepped down at the end of the Biden administration. Gold stated in an email that Uber believes its actions complied with New York City regulations and that the company would cooperate with FTC staff. Similarly, Lyft spokesperson CJ Macklin acknowledged receipt of the FTC’s request, emphasizing that the company takes antitrust laws seriously and intends to work with the agency on the matter.
Details of the Agreement and Potential Concerns
According to Bloomberg, the agreement between Uber, Lyft, and New York City officials aimed to address ride-share lockouts that had led to lower driver earnings. However, Uber’s spokesperson denied any direct deal with Lyft, asserting that the company did not conspire to restrict driver pay. Despite this, a press release from the New York City mayor’s office at the time described the situation as an “agreement” with both ride-share companies.
Related: Supreme Court Rejects Uber and Lyft’s Appeal in California Gig Worker Suits
The FTC’s concern, per Bloomberg, is whether the agreement allowed Uber and Lyft—normally direct competitors—to coordinate on driver hiring and wages, potentially violating antitrust laws. While New York City officials are not under investigation, the FTC is examining the extent of their involvement in shaping the deal and the legal framework under which it was established. The agency’s staff memo noted that the city’s role could provide the companies with some legal defense, but further investigation is required.
Next Steps in the Investigation
The future of the probe now rests with FTC Chair Andrew Ferguson, who was appointed by former President Donald Trump. According to Bloomberg, Ferguson has the authority to continue the investigation, slow its progress, or halt it entirely.
As part of the inquiry, the FTC is seeking communications between Uber and Lyft, as well as interactions with New York City officials, including the mayor’s office and the Taxi and Limousine Commission. The agency is also requesting a copy of the agreement itself, according to documents reviewed by Bloomberg.
Source: Bloomberg
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