Uber "price-fixing" lawsuit to go ahead

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The lawsuit has been filed against Travis Kalanick, Uber ‘s chief executive

A federal judge in the US has refused to throw out a lawsuit alleging that Uber’ s chief executive conspired with drivers to fix the cost of rides.

The app-based taxi booking service uses an algorithm to set the cost of trips, but the plaintiffs allege that Travis Kalanick used this to co-ordinate higher prices for New York drivers.

A complaint filed in December said this constituted a price-fixing conspiracy in violation of antitrust laws.

Uber has denied the claims.

The suit was originally filed by Uber customer Spencer Meyer from Connecticut.

Mr Kalanick had filed a motion to have the lawsuit thrown out, but this has now been rejected by Jed Rakoff, a judge at the US District Court, Southern District of New York.

“We disagree with this ruling, ” said Uber in a statement. “These claims are unwarranted and have no basis in fact.

“In just five years since its founding, Uber has increased competition, lowered prices, and improved service. ”

Uber is facing another lawsuit brought in California by three drivers who argued they should be defined as employees of the company – not contractors. This would entitle them to tips and expenses claims.

In that case, the court is awaiting documents to be received by November prior to the trial.

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Uber "price-fixing" lawsuit to go ahead
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