The FTC Closes Second Inquiry into Zuffa, LLC

The Federal Trade Commission has closed its second investigation into the business practices of the UFC’s parent company Zuffa, LLC. The story was first reported by the Las Vegas Review-Journal.

A letter to the Zuffa’s legal team was sent on November 20 notifying them that “no further action by the Commission is warranted at this time” and that the “investigation as been closed.” A copy of the letter can be read below.

In 2012 the FTC looked into the UFC’s purchase of the Strikeforce organization to ensure that the company had not violated Section 5 of the Federal Trade Commission Act, which ensures that unfair or deceptive acts are in place that would affect commerce. Essentially it is in place to make sure a monopoly is not formed.

Though the investigation is closed for now the Commission stated in the letter that they reserve “the right to take such further action as the public interest may require.”

It should be noted that a pending lawsuit is still out on Zuffa filed by former fighters which included notable names such as  including Brandon Vera, Nate Quarry, Cung Le, and Jon Fitch, claiming that company has a monopoly over the MMA industry and had violated anti-trust laws.

In a statement to the Las Vegas Review Journal, the UFC’s chief legal officer Kirk Hendrick addressed the news of the investigation, “After meeting with the FTC, we are pleased that they have sent us a letter stating that no further action is warranted and the investigation is now closed.” He also added, “We maintain full confidence in our business practices and continue to believe that the plaintiffs’ allegations are merit-less.”

 

 

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s