The stock trading application, Robinhood, after being the most popular among millennials, has become the beto of the crypto market due to oligopolistic manipulation. 

After its recent temporary suspension of purchases of GameStop and other “meme actions”, the platform faces new legal processes due to the behavior of competitors in an oligopoly when setting prices and conditions without a prior formal agreement.

According to the lawsuit, Robinhood is being charged with violating client contracts, violating fiduciary responsibilities, and violating anti-competitive practices and pricing laws, which could threaten market share and reduce profits.

More accused for the crime

The lawsuit filed in Texas on January 29 alleges that both Robinhood and the others involved, TD Ameritrade and WeBull, reached “a common understanding of what to do, which they carried out with conscious parallelism.” that is, an inappropriate behavior under conditions without prior agreement.

“In summary, the unfolding situation was a threat to traditional players in the financial industry, many of whom were the Defendants’ most important clients, and could not be allowed to continue,” as specified in the demand.

K. Villarroel

Source: cointelegraph

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