A judge has ruled that the B2B marketplace can continue its antitrust lawsuit

A judge has ruled that the B2B marketplace can push its antitrust laws forward

An ongoing antitrust lawsuit filed by a B2B marketplace against two large national beverage distributors is moving forward.

In March 2022, Provi, an online marketplace that connects buyers with sellers in the wholesale alcohol marketplace, filed a complaint in the U.S. District Court for the Northern District of Illinois, alleging that Southern Glazer Wine and Spirits LLC and Republic National Distribution Co. “for illegally suppressed competition related to the alcohol industry.”

On May 30, U.S. District Court Judge Nancy Maldonado ruled that the antitrust lawsuit alleges that Southern Glazer and RNDC illegally suppressed competition related to the alcohol industry can continue to operate and proceed to discovery.

Maldonado wrote that “Defendants’ allegedly anti-competitive conduct affects both competitors and customers in the relevant markets, further supporting the conclusion that Defendants’ allegedly anti-competitive conduct harms competition in the relevant markets as opposed to Provi Individual.”

The ruling denied a motion to dismiss filed by Southern Glazer and RNDC.

In its original complaint, Provi alleged that “as the industry moves online, defendants want to keep retailers from spending their money with competing wholesalers and are directing retailers to proprietary online alcohol marketplaces that do not carry other distributors’ products.” Defendants’ strategy not only maintains control over distribution markets and extends that control to online alcohol markets, but also gives them access to valuable purchasing data, which further empowers them in their relationships with retailers and enables them to create new monetization streams, including advertising and analyst data.

Provi’s complaint alleges:

Southern and RNDC blocked and rejected orders for wines and spirits when retailers chose to communicate via Provi.
Conspired to boycott Provi by coercing or coercing retailers to discontinue use of Provi.
In Southern’s case, forcing retailers to use its own e-commerce marketplace by requiring all online sales to be made through its own online marketplace, which a Southern sales representative described as “a disastrous failure of epic proportions.”

“The matter is important for the future of the industry, which is necessarily moving to digital solutions. “We look forward to bringing our case to a conclusion and obtaining valuable relief for Provi and the industry,” says Provi CEO Taylor Katzman.

Southern Glazer and RNDC did not immediately respond to Digital Commerce 360’s request for comment.

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