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Monday, Sep 23
DoJ suit to undo BazaarVoice's PowerRatings acquisition kicks off
- Arguments in the DoJ's suit to undo BazaarVoice's (BV +0.7%) $168M acquisition of PowerReviews began today in the U.S. District Court of San Francisco.
- The Dept. alleges that the acquisition "substantially lessened competition in the market for product ratings and reviews platforms in the United States, resulting in higher prices and diminished innovation." It cites internal company documents before the purchase in which Bazaarvoice employees noted that PowerRatings was keeping prices down.
- BazaarVoice lawyers intend to demonstrate that prices for ratings services have not increased substantially since the acquisition. Another point of contention: the seeming lack of identification by the DoJ of a relevant market harmed by the combination.
- The trial is expected to last 2 weeks.