Uber denies Meru's charges of abuse of dominant position
NEW DELHI: Taxi aggregator Uber on Wednesday told the Supreme Court that a probe into allegations of abuse of its dominant market position cannot be ordered in the absence of a prima facie finding supporting the charge.
Meru accused Uber of driving competitors and small taxi operators out of business by resorting to predatory pricing. The Competition Commission of India rejected Meru's plea for a probe citing lack of relevant data, but the Competition Appellate Tribunal ordered the antitrust body's director-general to investigate the matter on Meru's appeal. Uber India Systems, which offers app-based taxi aggregation service, challenged this in the top court, which last month stayed the probe.
"Such a probe has a wider effect internationally and cannot be ordered lightly. It has huge ramifications in international business," Uber's lawyer Kapil Sibal argued on Wednesday. The material produced by Meru to the CCI and the tribunal seeking a probe also doesn't show any dominant position for Uber-like that enjoyed by Microsoft or Coal India in their businesses, the senior lawyer said.
"We do not have exclusive arrangements with the drivers.We do not own the taxis. The same drivers have the (rival) Ola app, too. Nor are we in a position to influence the customer's choice," Sibal contended.
In any case, the charge of abuse of dominant position would have to be proven prima facie for the Competition Commission to initiate a probe, he argued before a three-judge bench led by Justice Dipak Misra.“Any probe without such a finding would set a wrong judicial precedent in the emerging area of competition law,“ he said.
Abhishek Manu Singhvi is the lead lawyer for Meru in the case.
Meru accused Uber of driving competitors and small taxi operators out of business by resorting to predatory pricing. The Competition Commission of India rejected Meru's plea for a probe citing lack of relevant data, but the Competition Appellate Tribunal ordered the antitrust body's director-general to investigate the matter on Meru's appeal. Uber India Systems, which offers app-based taxi aggregation service, challenged this in the top court, which last month stayed the probe.
"Such a probe has a wider effect internationally and cannot be ordered lightly. It has huge ramifications in international business," Uber's lawyer Kapil Sibal argued on Wednesday. The material produced by Meru to the CCI and the tribunal seeking a probe also doesn't show any dominant position for Uber-like that enjoyed by Microsoft or Coal India in their businesses, the senior lawyer said.
"We do not have exclusive arrangements with the drivers.We do not own the taxis. The same drivers have the (rival) Ola app, too. Nor are we in a position to influence the customer's choice," Sibal contended.
In any case, the charge of abuse of dominant position would have to be proven prima facie for the Competition Commission to initiate a probe, he argued before a three-judge bench led by Justice Dipak Misra.“Any probe without such a finding would set a wrong judicial precedent in the emerging area of competition law,“ he said.
Abhishek Manu Singhvi is the lead lawyer for Meru in the case.
