Com­pe­ti­tion com­mis­sion re­jects price­fix­ing al­le­ga­tions against Uber and Ola

The Northlines - - BUSINESS -

Ride-shar­ing firms Uber and Ola did not break price-fix­ing rules, the Com­pe­ti­tion Com­mis­sion of In­dia (CCI) said in a rul­ing is­sued late on Tues­day in re­sponse to a com­plaint about their tech­no­log­i­cal pric­ing strat­egy.

A case brought by a pri­vate in­di­vid­ual against the hold­ing com­pa­nies of the two firms claimed that their al­go­rith­mic pric­ing model “takes away the lib­erty of in­di­vid­ual driv­ers to com­pete with each other and thus, amounts to price fix­ing”.

In its judge­ment, the CCI ruled that there was no ev­i­dence the two com­pa­nies had con­spired to fix prices.

“The driv­ers may have ac­ceded to the al­go­rith­mi­cally-de­ter­mined prices by the plat­form (but) this can­not be said to be amount­ing to col­lu­sion be­tween the driv­ers,” the CCI said. Uber and Ola have also faced al­le­ga­tions from do­mes­tic ri­val Meru that in­vest­ments in both com­pa­nies by Ja­pan’s Soft­bank was ev­i­dence that they were abus­ing their mar­ket po­si­tion. Uber de­clined to com­ment. Ola did not re­spond to re­quests for com­ment.

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