FTC Approves Final Consent Order in Micromarket Kiosks Deal

The Federal Trade Commission finalized a consent order involving 365 Retail Markets LLC's $848 million acquisition of Cantaloupe Inc., a deal which seeks to combine the two largest providers of micromarket kiosks as well as software and services that allow food service operators to manage and operate numerous micromarkets.

The FTC's final consent order requires 365 Retail to divest Cantaloupe's competing micromarket kiosk provider, Three Square Market, to Seaga Manufacturing Inc.

The consent order settles FTC charges alleging that 365 Retail's initial proposed acquisition of Cantaloupe would have eliminated head-to-head competition, likely driving up the price for micromarket kiosks and related software and services, while reducing product and service quality. Higher micromarket kiosk costs would likely be passed on to consumers in the form of higher food prices, the FTC alleged.

The final consent order also imposes other conditions, including requiring 365 Retail to offer integrations between its software and hardware on reasonable and non-discriminatory terms to customers and third parties.

Following a public comment period, the Commission voted 2-0 to approve the final order.