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ARTICLE · 27 SEPTEMBER 2022

An Appraisal Of Competition In Cab Aggregators' Market

Khurana & Khurana, Advocates and IP Attorneys
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The world of high technology companies is seen as a dynamic area with a rapid pace of creative destruction. There is, however, a class of industries where there are strong network effects, where the market tends to collapse into a narrow set of players.

IndiaAntitrust/Competition Law

Recently, the Competition Commission of India, in Meru Travel Solutions Pvt. Ltd. v. Uber India Systems Pvt. Ltd. and others1, assessed the competition concerns in cab aggregators' market. Meru filed an information against Uber, alleging contravention of the provisions of Section 3 and 4 of the Competition Act, 2002. The contentions state that Uber is dominant in the market for radio taxi services in Delhi-NCR and has abused its position by restoring to predatory pricing to drive out the competitors.

The Commission, after assessing the contentions of Meru and Uber, vide its order dated 10.02.2016, pronounced that the market is competitive and Uber is not dominant2. Aggrieved by the same, the Informant filed an appeal before the hon'ble COMPAT praying to set aside CCI's order. COMPAT, vide its order dated 07.12.2016, directed the Director General to investigate the matter and submit the report to the Commission3. Further, Uber challenged COMPAT's decision before the

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