UBER - How will the antitrust lawsuit against Uber CEO Travis Kalanick settle?

The suit filed against Uber CEO Travis Kalanick, by Spencer Meyer on behalf of Uber passengers worldwide, claims that the technology in the Uber app is used to illegally coordinate high ‘surge-pricing’ fares, violating antitrust laws that protect customers from price manipulation. The app implements surge-pricing when there is heavy traffic, bad weather or on public holidays, and it can elevate the price up to multiple times the normal rate.

Uber drivers are considered independent contractors, rather than employees, and therefore Uber claim to have no responsibility over the prices that are set. However, the claim is that independent Uber drivers, who all charge the same price and implement surge pricing at the same time, violate the Sherman Antitrust Act, which prohibits "combination…or conspiracy… in restraint of trade." The suit is filed against Kalanick, rather than Uber Technologies Inc. in order to avoid an arbitration clause in the user agreement. On 29th July, U.S. District Judge Jed Rakoff denied Uber's request to throw out the lawsuit and have it settled in arbitration.

Uber has also been sued by Flywheel Taxi in an antitrust lawsuit in federal court in San Francisco.