Klobuchar, Senators Urge Vigilance Against Potential Harmful Consolidation of Food Delivery Apps

Press Release

U.S. Senator Amy Klobuchar (D-MN), Ranking Member of the Subcommittee on Antitrust, Competition Policy and Consumer Rights, along with Senators Patrick Leahy (D-VT), Richard Blumenthal (D-CT), and Cory Booker (D-NJ), wrote a letter to Assistant Attorney General Makan Delrahim and Federal Trade Commission (FTC) Chairman Joseph Simons, urging the Department of Justice (DOJ) and the FTC to monitor the negotiations relating to Uber's potential acquisition of Grubhub and to initiate an investigation if the parties reach an agreement to merge.

"Online food delivery markets are still evolving and finding new ways to connect customers with restaurants. Consumers should be able to look forward to a future in which online food delivery is more efficient, more innovative, and less expensive. A merger of two of the three biggest rivals in an already concentrated market risks depriving consumers of that outcome by potentially eliminating competition between the existing market participants," the senators wrote.

"We urge you to keep track of this potential acquisition and initiate an investigation if the parties reach a merger agreement to ensure that competition is preserved."

In her role as Ranking Member of the Senate Judiciary Subcommittee on Antitrust, Competition Policy and Consumer Rights, Klobuchar has championed efforts to protect consumers, promote competition, and fight consolidation in major industrial sectors, including the telecommunications, technology, agriculture, and pharmaceutical sectors.

Last week, Klobuchar raised concerns after reports emerged about Uber's interest in acquiring Grubhub.

Earlier this month, Klobuchar, Blumenthal, Booker, Leahy, and colleagues sent a letter to Assistant Attorney General for Antitrust Makan Delrahim and FTC Chairman Joseph Simons, urging DOJ and the FTC to be vigilant in enforcing the antitrust laws and protecting consumers during and after the coronavirus (COVID-19) pandemic.

Also in May, Klobuchar, Blumenthal, and Booker called on the DOJ to monitor the live performance marketplace to ensure that small and independent venues will have the chance to compete on a level playing field once this crisis has ended

Klobuchar leads the Consolidation Prevention and Competition Promotion Act to restore the original purpose of the Clayton Antitrust Act to promote competition and protect American consumers. The bill would strengthen the current legal standard to help stop harmful consolidation that may materially lessen competition.

In March, Klobuchar introduced new legislation to deter anticompetitive abuses that distort the competitive process and harm consumers, innovation, and new business formation. The Anticompetitive Exclusionary Conduct Prevention Act prohibits anticompetitive exclusionary conduct that risks harm to the competitive process. It also makes reforms to improve antitrust enforcement across the board. The bill was cosponsored by Senators Richard Blumenthal (D-CT) and Cory Booker (D-NJ).

In August 2019, Klobuchar introduced the Monopolization Deterrence Act to crack down on monopolies that violate antitrust law. The legislation would give the DOJ and FTC the authority to seek civil penalties for monopolization offenses under the antitrust laws, a power they currently do not have. The bill is cosponsored by Senators Blumenthal, Dianne Feinstein (D-CA), and Ed Markey (D-MA).

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