The Supreme Court upheld the order of the Competition Commission of India (CCI), which dismissed complaints alleging cartelization and anti-competitive practices by cab aggregators Uber and Ola.
The Informant, Samir Agarwal alleged that due to algorithmic pricing, neither are riders able to negotiate fares with individual drivers for rides that are booked through the apps, nor are the drivers able to offer any discounts.
Thus, the pricing algorithm takes away the freedom of riders and drivers to choose the best price on the basis of competition, as both have to accept the price set by the pricing algorithm.
In 2018, Agrawal sought CCI to initiate inquiry Ola and Uber alleging that they entered into price-fixing agreements in contravention of section 3(1) read with section 3(3)(a) of the Act.
The CCI had noted that a rider books his/her ride at any given time which is accepted by an anonymous driver available in the area, and there is no opportunity for such driver to coordinate its action with other drivers. This cannot be termed as a cartel activity/conduct through Ola/Uber’s platform.
A three-judge bench comprising Justices R.F. Nariman, Krishna Murari and K.M. Joseph said, “coming now to the merits, we have already set out the concurrent findings of fact of the CCI and the NCLAT, wherein it has been found that Ola and Uber do not facilitate cartelization or anti-competitive practices between drivers, who are independent individuals.”
In this backdrop, the bench said it saw no reason to interfere with these findings. Resultantly, the appeal is dismissed.
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