CCI rejects ‘predatory pricing’ allegations against Ola

It was alleged that the company was driving out existing players as the fare charged by it was 'abysmally low' and was claimed to be less than one-third of the government prescribed rates.

It was alleged that the company was driving out existing players as the fare charged by it was ‘abysmally low’ and was claimed to be less than one-third of the government prescribed rates.

Competition Commission has dismissed allegations that ANI Technologies, which runs taxi and auto services under Ola brand, abused its dominant position in the national capital with predatory pricing ways. ANI Technologies operates services under brand names Ola and Taxi For Sure.

It was alleged that the company was driving out existing players as the fare charged by it was ‘abysmally low’ and was claimed to be less than one-third of the government prescribed rates.

To assess the complaint and whether there has been violation of competition norms, the regulator considered ‘provision of radio taxi services in Delhi and provision of auto rickshaw services in Delhi’ as the relevant market.

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After finding that the company is not a dominant player in the relevant market, Competition Commission of India (CCI) dismissed the allegations.

Referring to earlier instances of similar complaints against taxi hailing apps Ola and Uber, the regulator said the present case does not bring out any new or additional fact which would warrant a different decision.

Noting that there are various other players, CCI said the market is competitive and none of the players can be said to be dominant in the market for radio taxi services in the national capital at present.

Citing the market share available on the website of Government of NCT of Delhi, the watchdog observed that ANI Technologies’ share is very low with respect to market for auto-rickshaws in Delhi.

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“It seems implausible that with such a low market share, the opposite party (ANI Technologies) would be in a dominant position in the market for auto rickshaws in Delhi.

“In the absence of the opposite party holding a dominant position in the relevant market for auto rickshaws in Delhi, the question of abuse by it does not arise,” CCI said in an order dated August 31.

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