No abuse of dominance by 'Uber' in providing taxies at low fares; CCI rejects complaint of Meru Cabs
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Competition Act : Where there was existence of yellow taxis
which posed a significant competitive constraint on other taxi operators in the
city of Kolkata. In such a scenario, it was difficult to accept the contention
of the Meru cabs regarding UBER Group's dominance in providing the radio taxi
services in Kolkata
Facts:
(a)
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Meru Travel Solutions Pvt. Ltd. ('Meru
cabs') filed information against Uber Group alleging abuse of dominance by
latter in the radio taxi service market in Kolkata. It was alleged that Uber
Group was following the practice of predatory pricing in Kolkata and was able
to offer low prices as it had received huge global funding.
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(b)
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Meru cabs also alleged that before Uber
entered the relevant market, the average per price kilometre was Rs 20 in
Kolkata and after its entrance to the market it started offering Rs 9 per km
even when it was incurring losses
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(c)
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The Meru Cab prayed Commission to direct the
DG to investigate the matter and hold the conduct of Uber Group to be abusive
in the relevant market.
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(d)
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However, 'Uber' contended that the active
presence of yellow taxis in Kolkata poses a strong competitive constraint on
radio taxis which warrants inclusion of yellow taxis in the relevant product
market definition.
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The Competition Commission of India held as under:
(1)
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The existence of yellow taxis poses a
significant competitive constraint on the behaviour of other taxi operators
in the city of Kolkata. In such a scenario, it was difficult to accept the
contention of the Meru cabs regarding UBER Group's dominance in the relevant
market. The Commission dismissed the complaint filed by Meru cab against Uber
and held that the UBER Group did not hold a dominant position in the relevant
market.
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(2)
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Since Uber did not seem to be dominant,
there was no need to go into the examination of Uber' s conduct in such
relevant market.
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