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Drivers’ Lawsuit Claims Uber and Lyft Violate Antitrust Laws

Quoted: Peter Carstensen, an emeritus law professor at the University of Wisconsin, said he was skeptical that the drivers would get traction with their claims that Uber and Lyft were illegally setting the price drivers could charge.

But Mr. Carstensen said a state judge might rule in the plaintiffs’ favor on other so-called vertical restraints, such as the incentives that help tie drivers to one of the platforms by, for example, guaranteeing them at least $1,000 if they complete 70 rides between Monday and Friday. A judge may conclude that these incentives largely exist to reduce competition between Uber and Lyft, he said, because they make drivers less likely to switch platforms and make it harder for a new gig platform to hire away drivers.

“You’re making it extremely difficult for a third party to come in,” Mr. Carstensen said.