Samir Agrawal V. Competition Commission of India & ORS.

Abstract

The Informant, Samir Agarwal, who works as an independent legal practitioner, filed “the Information” on August 13, 2018, with the Competition Commission of India. He sought an investigation under s. 26(2) of the Competition Act, 2002, regarding the alleged anti- competitive behavior of cab aggregators such as Ola and Uber who offer radio taxi services. The Informant claimed that the algorithmic pricing used by these companies limits the ability of both riders and drivers to negotiate fares or offer discounts. The pricing algorithm sets the price for the ride, leaving no room for competition and eliminating the option to choose the best price based on competition. According to the informant, Ola and Uber’s pricing algorithm manipulates supply and demand, ensuring that drivers receive higher fares who would otherwise compete against one and another. The informant alleged that cooperation between drivers through the apps results is concerted action and is in violation of s. 3(3)(a) read with s. 3(1) of the Competition Act. The informant argues that the apps function similarly to a trade association, enabling cartel-like behavior. Additionally, because Ola and Uber have more bargaining power than riders when it comes to pricing, they can implement price discrimination, which results in riders paying artificially inflated fares based on their willingness to pay. The informant also made various averments against the cab aggregators of engaging in resale price maintenance, which is a violation of antitrust laws under s. 3(4)(e) of the Act.