The Supreme Court recently dismissed an appeal filed by Uber
India, thereby giving a green signal to Competition Appellate
Tribunal to initiate an investigation into allegations of abuse of
dominant power by Uber in the National Capital Region.
Timeline of the events:
In 2015, Meru – a radio taxi service business
–approached the Competition Commission of India (CCI)
alleging that Uber was engaging in predatory pricing. Meru's
complaint basically revolved around the fact that besides reduced
tariffs, Uber was offering massive discounts to its customers and
was also offering unreasonably high incentives to its fleet of
drivers.
In the information provided by Meru, it detailed how Uber was
losing Rs. 204 per trip, which according to Meru made no economic
sense and only pointed towards Uber's intention of eliminating
competition in the market.
