Senators call for antitrust investigation of DraftKings, FanDuel
They contacted the FTC and Justice Department.
Key Points
- The lawmakers responded to claims alleging both companies were coordinating against competition
- Senator Welch released the letter on social media
- Google was also the subject of an antitrust ruling earlier this year
Two US senators have called for an investigation by the Federal Trade Commission and Justice Department into DraftKings’ and FanDuel’s online betting platforms, according to a Reuters report.
Senators Mike Lee and Peter Welch sent a letter on December 5 to both departments over concerns that DraftKings and FanDuel “are coordinating against competitors.”
This was in response to reports that both DraftKings and FanDuel were “allegedly acting together to pressure businesses not to engage with competitors.”
Lee and Welch wrote in their letter, “After their merger to monopoly was blocked, it seems that FanDuel and DraftKings have arguably acted as one company, violating our antitrust laws.”
Lee posted the letter on his social media, the Reuters report said.
DraftKings recently received a $200,000 penalty by the Securities and Exchange Commission (SEC) due to a post the company’s CEO made on X and on LinkedIn.
The SEC claimed that DraftKings’ public relations team shared a finance update on CEO Jason Robins’ personal X account and on LinkedIn.
The commission also said it believes that these platforms are “not an official source for DraftKings and information about company growth shouldn’t have been shared to the selective audiences on LinkedIn and X.”
FanDuel and a commercial affiliate of the Major League Baseball Players Association (MLBPA) recently reached a settlement for an ongoing lawsuit.
The suit was filed because of “alleged unauthorized use of the names and images of MLB players on its sports betting platform.”
FanDuel agreed to “a voluntary dismissal of the lawsuit with prejudice,” according to the settlement.
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