Competition Commission of India rejects complaint against Rapido; finds no abuse of dominance

Rapido was accused of operating private vehicles for commercial purposes in Uttarakhand, charging fares below the state-regulated minimum standards and engaging in non-transparent pricing and tax practices.

New Delhi: The Competition Commission of India (CCI) has dismissed a complaint against Roppen Transportation Services, the parent company of the mobility platform Rapido, finding that no prima facie case of abuse of a dominant position was established.

The complainant alleged that Rapido was operating private vehicles for commercial purposes in Uttarakhand, charging fares below the state-regulated minimum standards and engaging in non-transparent pricing and tax practices.

In its order passed on May 22, the fair trade regulator said issues raised by the complainant largely related to transport regulation and licensing norms under the Motor Vehicles Act, 1988, and therefore fell outside the ambit of the competition law.

On the issue of predatory pricing, CCI observed that the fare structure cited by the complainant did not appear anti-competitive. It noted that the Uttarakhand Transport Commissioner had already prescribed maximum fares for contract carriages.

Further, the competition watchdog said allegations regarding zero-commission rides, GST remittance, state transport authority levies and operational grievances such as drivers bearing pickup costs or e-rickshaws being deployed in place of autos did not establish any contravention of Section 4 of the Competition Act, which deals with abuse of dominant position.

"The Commission is of the view that no prima facie case of contravention under Section 4 of the Act has been made out... and that the present Information be closed forthwith under Section 26(2) of the Act," CCI said in the order.