04 March 2016

Continuance of MD who is over 70 years of age - Special Board resolution required

Noticing glaring differences in the data and results depicted by the two research reports, casting a serious doubt on their authenticity and neutrality, Competition Commission of India (CCI) on 10-2-2016 has held that fluctuating market share figures of the various players show that the competitive landscape in the relevant market is quite vibrant and dynamic. The dispute related to the market share of radio taxi aggregators in the relevant market of Delhi. While one report as submitted by the applicant alleged the opposite party to be dominant, the other report as considered by the Commission in another case, was of the view that another company (third party) held the major share. The report as submitted by the applicant (Meru Travel Solutions Private Limited) was also doubted by the CCI here as the opposite party (Uber Group) was not interviewed during the collection of data in the said report. Lastly, no case under Section 4 of the Competition Act was found by the Commission as both the research reports had acknowledged the presence of other major players in the market.

The Commission also rejected allegations under Section 3 noticing that the opposite party had categorically denied to any exclusivity conditions being imposed by them on the taxi drivers on its network and the applicant had also failed to produce any evidence in this regard. Further, noting that the regulatory architecture in Delhi is different from that operating in the NCR, and that the aggregator’s application also distinguishes between taxis available for booking within Delhi and those available for booking for commuting from Delhi to NCR, Commission was of the view that the relevant geographical market in the case would be market of radio taxi service in Delhi.


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