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This Article is From Dec 07, 2016

Charges Of Predatory Pricing Back To Haunt Uber In Delhi

Meru Cabs alleged that Uber was indulging in predatory pricing in New Delhi.

Charges Of Predatory Pricing Back To Haunt Uber In Delhi
A taxi driver user the Uber app in New Delhi. (Photographer: Dhiraj Singh/Bloomberg)

The Competition Appellate Tribunal (COMPAT) has asked the Competition Commission of India (CCI) to look into charges of predatory pricing by the world's largest cab-hailing service, Uber. The tribunal which was hearing a plea filed by Uber's competitor Meru Cabs, has now directed a CCI Director General to carry out the probe.

The competition watchdog had earlier rejected Meru's complaint, accusing Uber of misusing its dominant position in the National Capital Region to indulge in predatory pricing, in violation of Section 3 and 4 of the Competition Act, 2002.

The commission, in its order dated February 10, 2016 had set aside Meru's complaint, citing fluctuation in market share, which meant that Uber may not have always held on to the dominant position.

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