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United States v. Bazaarvoice, Inc.
United States District Court for the Northern District of California
Case No. 13-CV-00133WHO (2014)
Bazaarvoice, Inc. (defendant) was the dominant creator of online platforms that allow consumers to rate and review products on a retailer’s website. Its customers, who were retailers, used the reviews to increase their web sales. Bazaarvoice controlled 41 percent of the market. Bazaarvoice’s main competitor, PowerReviews, controlled 15 percent of the market, and in-house platforms accounted for 42 percent of the market. Bazaarvoice purchased PowerReviews. Because of the size of PowerReviews, premerger notice to the government (plaintiff) was not required. The government noticed the merger regardless and sued Bazaarvoice for violating antitrust laws. Bazaarvoice claimed that its market power was ephemeral due to the ever-changing nature of the market and that new competitors, including Google and Amazon, were going to enter the market soon.
Rule of Law
Holding and Reasoning (Orrick, J.)
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