What happened
The Federal Trade Commission has finalized a consent order resolving competition concerns over 365 Retail Markets LLC's $848 million acquisition of Cantaloupe Inc., a transaction the agency said would combine the two largest providers of micromarket kiosks and related software and services.
The final order requires 365 Retail to divest Cantaloupe's competing micromarket kiosk provider, Three Square Market, to Seaga Manufacturing Inc. The FTC said the divestiture is aimed at preserving competition in the systems that food service operators use to manage and operate micromarkets.
The agency said the order settles charges that 365 Retail's initial proposed acquisition of Cantaloupe would have eliminated head-to-head competition, likely driving up prices for micromarket kiosks and related software and services while reducing product and service quality. The FTC also alleged that higher kiosk costs would likely be passed on to consumers through higher food prices.
Beyond the divestiture, the order requires 365 Retail to offer integrations between its software and hardware on reasonable and nondiscriminatory terms to customers and third parties, according to the FTC.
The Commission voted 2-0 to approve the final order after a public comment period. The FTC press release identifies the related case as PEP VIII/Cantaloupe, In the Matter of.