Supreme Court (SC) has ordered a probe into alleged anti-competitive practices by taxi aggregator Uber India Systems after finding that company is intentionally suffering losses while offering cheap rides to customers and heavy incentives to taxi drivers. It was a competing taxi service Meru Travels Solutions who raised alarm on Uber’s anti-competitive and anti-trust practices and h alleged that Uber has opted many abusive practices with an objective to establish a mopoly and eliminate competition. It was alleged that Uber is willingly suffering a loss of as much as Rs 200 per trip in a bid to kill competition. 

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SC finds evidence against UBER

SC found eugh evidence to dismiss appeal filed by Uber against probe ordered by erstwhile Competition Appellate Tribunal (COMPAT) into alleged abuse of dominance and anti-competitive practices by Uber. SC while dismissing appeal, ordered an investigation on taxi aggregator who was intentionally suffering losses and has also requested director-general to complete investigation within six months. 

Meru Travels Solutions filed a complaint against UBER

As per complaint filed by Meru Travels Solutions, Uber allegedly resorted to many abusive practices with sole intent to establish its mopoly and eliminate competitors from market by way of discounts and incentives. It was alleged that Uber is spending about $885 million to generate a revenue of $415 million.  

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 Competition Commission of India (CCI) in February 2016 h rejected Meru’s complaint, saying inability of existing players to match invative techlogy of any player or model created for operating in a particular industry cant be said to be creating entry barriers in itself. reafter, COMPAT h directed CCI’s probe unit director general to conduct a fresh probe into allegations of abuse of dominance and anti-competitive practices by Uber.  

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Uber willingly losing Rs 200 per ride to kill competition

Supreme Court’s bench comprising Justice Rohinton Fali Nariman and Justice Surya Kant took te of allegation that Uber was losing Rs.204 per trip in respect of every trip me by cars, which doesn't make any ecomic sense and raises a suspicion of Uber's practices.

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