Federal Trade Commission closes inquiry into UFC business practices
A second Federal Trade Commission investigation into the business practices of the Ultimate Fighting Championship's parent company in three years has been closed without further action being taken by the commission.
In a letter to Zuffa LLC's legal counsel addressed Nov. 20, the FTC's Northwest Regional Office attorney Stuart Hirschfeld wrote the nonpublic investigation by the FTC's Bureau of Competition to determine whether Zuffa or any of its partners are engaging in conduct that violates Section 5 of the Federal Trade Commission Act through the use of long-term exclusive contracts or other exclusionary conduct has been closed.
Section 5 of the Federal Trade Commission Act addresses unfair or deceptive business practices.
However, the letter didn't necessarily clear the UFC of the allegations but leaves the door open for potential further action.
"This action is not to be construed as a determination that a violation may not have occurred, just as the pendency of an investigation should not be construed as a determination that a violation has occurred," the letter read. "The Commission reserves the right to take such further action as the public interest may require."
"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," Hendrick stated. "We maintain full confidence in our business practices and continue to believe that the plaintiffs' allegations are meritless."
Former UFC fighters Jon Fitch, Nate Quarry and Cung Le are at the forefront of a class-action antitrust lawsuit filed against Zuffa last December in Northern California. The case, which claims the UFC has set out to "intentionally and systematically cripple the free market," was later moved to Nevada.
A motion by Zuffa's attorneys to dismiss the case was denied in in September.
The FTC investigation began in May. The FTC previously investigated Zuffa in 2012 after the UFC acquired rival organization Strikeforce and similarly closed the investigation without taking further action.
Contact reporter Adam Hill at ahill@reviewjournal.com or 702-224-5509. Find him on Twitter: @adamhilllvrj
