A favorable ruling for Authenticom in its antitrust case against CDK Global Inc. and Reynolds and Reynolds Co. has been put on hold after appeals from the dealership management system giants.
Last month, a judge ruled that CDK and Reynolds had to allow Authenticom, a data integration service provider, access to dealerships' data within the two companies' systems while the case proceeded.
But on Tuesday, the U.S. Court of Appeals for the Seventh Circuit motioned to stay that district court preliminary injunction. The appeals court also expedited the schedule for a review of the injunction. Sources familiar with the case said oral arguments have been scheduled for Sept. 19.
The injunction, filed in the U.S. District Court for the Western District of Wisconsin, had been a critical victory for Authenticom. It prohibited CDK and Reynolds from blocking Authenticom from its systems, a move that Authenticom said effectively could put the company out of business while the lawsuit proceeded.
The district court's order for the injunction said Authenticom had "at least a moderate chance of success in proving that defendants have violated the Sherman Act," which prohibits harmful anti-competitive behavior and monopolization.
"The balance of harms tips sharply in favor of Authenticom, because Authenticom is clearly at risk of going under without a preliminary injunction," the order said.