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The Competition Commission of India (CCI) on Tuesday, dismissed the charges filed by Meru Cabs against Uber. Meru had alleged that Uber was following predatory pricing to increase its market share.
In its complaint to CCI, Meru had filed charges on Uber that it was charging very low rates for its services, the average market price of the radio taxis in Kolkata before Uber entering the market was about INR 20-22 per km.
After Uber introduced its services in Kolkata last year, it lowered its service rate to about INR 15/KM. And later, dropped to about INR 9/KM along with driver incentives and customer discounting.
As there are various other players such as Ola, Mega Cabs, in Kolkata apart from Uber, thus no case of dominant position was registered against the company.
CCI in its order stated, “The Commission is of the view that the OP Group (Uber) does not hold a dominant position in the relevant market. Since OP Group (Uber) does not seem to be dominant, there is no need to go into the examination of its conduct in such relevant market.”
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