CCI Investigating Market Abuse Cases Against Online Cab Firms

Competition Commission is looking at five cases of alleged abuse of dominant position by online cab companies, the government said Friday. However, specific details were not disclosed.

“Five cases against online cab companies alleging abuse of dominant position in contravention of the provisions of Competition Act, 2002 are under investigation/consideration of Competition Commission of India,” Corporate Affairs Minister Arun Jaitley told the Lok Sabha in a written reply. CCI keeps a tab on unfair business practices across sectors.

In April this year, the fair trade regulator had ordered a detailed probe against app-based radio taxi service operator Ola Cabs for alleged predatory pricing to keep out the rivals. After looking into the allegations, the Commission had said it was of the view that “prima facie” the conduct of Ola amounts to abuse of dominant position.

The complaint was filed against ANI Technologies Pvt Ltd, which provides radio taxi services under Ola brand. “It is observed from the material placed on record that the opposite party is spending more money on discounts and incentives (apart from the variable costs it may be incurring) on customers and drivers compared to the revenue it is earning,” the regulator had said while ordering the detailed probe.