New Delhi: The Supreme Court on Friday ordered status quo on the probe against Uber by Competition Commission of India on alleged unfair trade practices adopted by the firm in fixing surging/discounted fare.
A bench of Justices Dipak Misra and D.Y. Chandrachud issued notice to Meru Cabs and CCI and posted the matter for further hearing on February 17. The status quo was ordered during the hearing of an appeal filed by Uber against the Competition Appellate Tribunal (Compat) ordering a probe by the CCI on the alleged abuse of dominance by Uber. Senior counsel Harish Salve, appearing for Uber, argued that the tribunal had no power to order a probe by the CCI. He said any probe against the company will have serious global repercussions. He prayed for an interim stay of the order directing a probe. On behalf of Meru Cabs, stay was opposed but the court directed status quo to be maintained.
Taxi-hailing apps like Uber and radio taxi service providers such as Meru are locked in a stiff competition across the country. Earlier, there have been allegations and counter-allegations by the two sides.
The tribunal ordered a probe on the basis of the complaint that Uber allegedly resorted to many abusive practices with the sole intent to establish its monopoly and eliminate otherwise equally efficient competitors from the market by way of discounts and incentives.
It was alleged that Uber is spending about $885 million to generate a revenue of $415 million. The CCI in February last had rejected the complaint but on appeal, the tribunal directed the CCI to conduct a probe. The appeal is directed against this order.
