LinkedIn to change contracts in antitrust settlement with US users

LinkedIn has agreed to revise parts of its business contracts to settle an antitrust lawsuit filed by US users.

The proposed class action settlement, filed in a San Francisco federal court on Friday, does not involve any financial payout. It still needs a judge’s approval.

The lawsuit, launched in 2022, accused LinkedIn of using restrictive contracts to block potential rivals. This allegedly allowed the platform to overcharge for its premium services.

Plaintiffs said LinkedIn, owned by Microsoft, was “effectively paying potential competitors not to enter the market.”

LinkedIn denied any wrongdoing and declined to comment. Microsoft was not named in the lawsuit.

Under the deal, LinkedIn will pause enforcement of contract terms related to application programming interfaces (APIs) for three years.

These contracts had allowed LinkedIn partners to access user data in exchange for agreements not to compete, according to the settlement.

Plaintiffs believe this pause will promote fairer competition, reduce prices, and expand consumer options.

About 9 million LinkedIn Premium subscribers from January 13, 2018, to now are included in the settlement.

Those affected can opt out if they wish to sue separately.

Though there’s no direct compensation, the plaintiffs plan to present expert testimony showing the deal’s value.

Their lawyers will seek up to $4 million in legal fees.

The case is Todd Crowder et al v. LinkedIn Corp, US District Court, Northern District of California, No. 4:22-cv-00237-HSG.

(Reuters)

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