The US Court of Appeals for the Third Circuit [official website] on Tuesday rejected [opinion, PDF] a claim by a number of Philadelphia taxi companies and the Philadelphia Taxi Association that Uber Technologies was violating antitrust laws.
The companies were accusing Uber of trying to monopolize the taxi market in the area and hurting their business as well. They argued that, because Uber cars did not need the medallions that city cabs do, they were able to harm the cab companies by undercutting their prices. The companies claimed that as a result of Uber’s activity, they lost customers as well as drivers and are now on the verge of going out of business.
The decision was reached by a unanimous three-judge panel. The court found that there were no “allegations of truly anticompetitive conduct,” nor any showing of Uber’s intent to monopolize. The court not only found that Uber was not being anticompetitive, but also that their activities created more choice for consumers and possibly enhanced competition.