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Here’s why CCI dismissed a long-standing complaint against Uber

Filed five years ago, the complaint accused Uber of predatory pricing and foreclosing competition in the taxi service market. Although CCI initially dismissed the case in 2016, the complainant appealed to the appellate tribunal. The Competition Commission of India (CCI) on Wednesday dismissed a complaint filed by Meru Cabs against Uber for alleged abuse of dominant position, an order by the Commission stated. "The Commission is of the view that the facts and evidence on record do not establish the dominance of Uber, in the absence of which the question of abuse does not arise," the order stated. Why this matters? This complaint has been under investigation since 2016 and the latest order by CCI provides valuable insight into what the competition authority thinks about competition in the radio taxi service market. What is the complaint about? The allegations against Uber: The initial complaint filed by Meru Cabs in 2016 alleged that "owing to Uber’s deep pockets, Uber indulged into a series of anti-competitive practices ... with the sole intent to establish its monopoly and to eliminate otherwise equally efficient competitors from the market." The alleged anti-competitive practices are the following: Predatory pricing: The average market price of radio taxis prevailing in Delhi-NCR before Uber was ₹23 per km, but Uber offered prices much below this despite sustaining losses of about ₹200 per trip in order to eliminate competition, the complainant alleged. Exclusionary practices: Meru alleged that Uber used an incentive policy that is "not economically justified and is aimed at exclusively engaging the…

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