$168M PowerReviews Merger Stifles Competition, DOJ Says

Law360, New York (January 11, 2013, 2:46 PM EST) -- The U.S. Department of Justice sued Bazaarvoice Inc. in California federal court Thursday, alleging the product ratings platform company's $168.2 million acquisition of rival PowerReviews Inc. dramatically decreases competition, leads to higher prices and lessens innovation.

The Justice Department argues that the buy violates Section 7 of the Clayton Act, pressing the court for an order requiring Bazaarvoice to divest enough assets to create a separate and viable competing business that can replace PowerReviews' competitive presence in the marketplace.

“Bazaarvoice bought PowerReviews knowing that it was...
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