Bidens FTC launched last-minute Uber, Lyft probe over alleged collusion in stiffing NYC drivers

The Federal Trade Commission reportedly launched a last-minute probe into whether Uber and Lyft illegally colluded to keep New York City driver pay lower — an inquiry launched on the same day that Lina Khan announced she was stepping down as chair of the agency.The FTC regulators on Jan.21 issued civil investigative demands, which function similarly to subpoenas, requiring both companies to submit information regarding an agreement they reached with Big Apple officials over driver compensation, Bloomberg News reported on Thursday.Khan, a progressive nominated by President Joe Biden, stepped down as FTC chair on Jan.

21.Uber and Lyft were told they had to respond within 30 days of the order.With Khan’s departure, the future of the investigation now lies in the hands of FTC Chair Andrew Ferguson, who was nominated by President Donald Trump.Josh Gold, a spokesperson for Uber, told Bloomberg that the company received the request.“We are confident that our actions here were reasonable and appropriate under New York City rules,” Gold told Bloomberg News.He added that Uber intends to cooperate fully with FTC staff to provide the requested documentation.Similarly, Lyft acknowledged receiving the inquiry.Company spokesperson CJ Macklin emphasized Lyft’s commitment to following federal antitrust laws.“We take antitrust law very seriously and have fully complied throughout this process,” Macklin told Blomberg News.The Post has sought comment from Khan, the FTC, Uber and Lyft.Following news of the regulatory probe, both companies saw declines in their stock prices.As of 1:30 p.m.

in New York, Uber shares had dropped by 1.24% to $65.94 a share, while Lyft stock fell by 1.41% to $13.24.In July, Uber and Lyft agreed with the city to reduce ride-share “lockouts” affecting driver earnings.Lockouts, a practice in which drivers are temporarily barred from logging into their ride-hailing apps, had been criticized for significantly reducing the amount of paid working...