Tech firm NCR fights antitrust lawsuit over crypto ATMs

Tech firm NCR fights antitrust lawsuit over crypto ATMs

A bitcoin ATM is seen at a sales space throughout the 2022 Bitcoin Convention in Miami Seaside, Florida, U.S. April 6, 2022. REUTERS/Marco Bello/File picture

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  • A US Alliance Group lawsuit claimed that NCR’s buy of an ATM operator and software program firm was anti-competitive
  • NCR legal professionals say Alliance “alleged nothing greater than the lack of present contracts”

(Reuters) – Banking and monetary know-how agency NCR Corp has requested a California federal choose to dismiss a lawsuit by fee processing supplier US Alliance Group Inc alleging antitrust violations within the cryptocurrency ATM market.

NCR’s attorneys mentioned in a court docket submitting Friday that the California-based US Alliance had supplied solely “clear and conclusive” allegations towards NCR, and that the grievance, filed final month, didn’t present ample factual allegations to show any declare. violation of competitors regulation.

The US Alliance lawsuit alleged that NCR’s purchases of ATM operator Cardtronics final 12 months and LibertyX, a Florida-based cryptocurrency software program supplier, in January “eradicated different service suppliers and ATM suppliers ATMs from the crypto ATM house.” In Friday’s submitting, NCR attorneys at Kilpatrick Townsend & Stockton defended the 2 offers as anti-competitive.

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“Courts have repeatedly defined that mergers and acquisitions usually negatively influence displaced suppliers and distributors, however that doesn’t represent an antitrust harm or make the transaction anticompetitive,” Kilpatrick companion Douglas Gilfillan wrote. “That is true even when the reporting entity is liquidated and loses all enterprise.”

Gilfillan and an Atlanta-based NCR consultant didn’t instantly reply to messages looking for touch upon Tuesday.

US Alliance and an lawyer for the agency, James Huber of the World Authorized Legislation Agency, additionally didn’t instantly reply to comparable messages.

The grievance alleges that NCR’s acquisition of Texas-based Cardtronics and LibertyX will “scale back competitors within the cryptocurrency ATM market” and result in elevated costs for retailers and clients. The US Alliance Group lawsuit says that cryptocurrency ATMs entered the market in 2014 and permit customers to purchase or promote digital forex.

US Alliance Group (USAG) alleged that NCR final 12 months “knowingly orchestrated a scheme to disrupt, intervene with and terminate USAG’s contractual alliances with LibertyX and Cardtronics.” The plaintiff mentioned that he misplaced cash, buying and selling property and market capitalization, in addition to different vested pursuits within the ATM cryptocurrency market.

NCR’s legal professionals mentioned within the paperwork that US Alliance Group “alleged nothing greater than the lack of present contracts, which alone doesn’t display {that a} competitor has monopoly energy.”

NCR additionally claimed that the plaintiff had did not specify a “believable related market.” NCR mentioned US Alliance Group’s cryptocurrency ATM market “seems to be an amorphous soup of services offered to retailers and/or customers.”

A listening to is scheduled for July 28 earlier than US District Choose Fred Slaughter in Santa Ana federal court docket.

The case is US Alliance Group Inc v. NCR Corp, US District Court docket, Central District of California, No. 8:22-CV-00980-FWS.

For US Alliance Group: James Huber of World Authorized Legislation Agency

For NCR: Douglas Gilfillan of Kilpatrick Townsend & Stockton

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