The Supreme Court has given its nod to investigate cab aggregator Uber’s alleged anti-competitive practices and abuse of market dominance in India.
This comes Meru Travel Solutions Pvt Ltd complained to anti-trust body Competition Commission of India (CCI) against Uber in 2015, that Uber was intentionally pricing its rides lower than they are supposed to be in order to eliminate competition.
The recent Supreme Court order by Justice R F Nariman and Justice Surya Kant stated, “There are two important ingredients which section 4(1) itself refers to if there is to be an abuse of dominant position –
(1) the dominant position itself.
(2) its abuse.
‘Dominant position’ as defined in Explanation (a) refers to a position of strength, enjoyed by an enterprise, in the relevant market, which, in this case is the National Capital Region (NCR), which: (1) enables it to operate independently of the competitive forces prevailing; or (2) is something that would affect its competitors or the relevant market in its favour.”