- within Strategy, Environment and International Law topic(s)
- with readers working within the Accounting & Consultancy and Law Firm industries
The CCI closed a case of alleged predatory pricing under Section 4 of the Competition Act against Roppen Transportation Services Private Limited, which operates the cab aggregator platform, Rapido. On a review of the complaint (which had been filed by an individual associated with a competing transport aggregator), the CCI found that it did not contain sufficient evidence to warrant the initiation of an investigation under the Competition Act, and therefore, dismissed the case at the threshold stage itself.
On the issue of predatory pricing, it was alleged that Rapido compels drivers using its platform to bear the cost of unpaid pickups, which allows it to charge lower fees than its competitors. The CCI found no merit in this allegation. It compared the maximum fares and rates prescribed by the relevant State Government authority with the rates for rides on Rapido and concluded that Rapido did not charge predatory prices. The CCI’s order, however, lacks details of the metrics it used for the comparison of the fares. Given that there was no case of predatory pricing in the CCI’s view, no assessment of the relevant market or the existence of a dominant position was conducted.
The complaint also alleged that Rapido contravened several other laws, such as the Motor Vehicles Act, tax laws, etc. The CCI clarified that these issues fell outside its jurisdiction.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
[View Source]