Supreme Court agrees to hear Meru's appeal in Ola 'predatory pricing' case

The Supreme Court on May 9 agreed to hear an appeal by Meru Cabs against a decision of the National Company Law Appellate Tribunal (NCLAT), which rejected its allegation of predatory pricing against rival taxi aggregator Ola Cabs.

Mumbai-based Meru Cabs has accused Ola of abusing its dominant position in the Bengaluru market by indulging in predatory pricing and violating the competition law.

The Competition Commission of India (CCI), after its Director general's investigation, in 2017 rejected Meru's claims and held that Ola was not in a dominant position in Bengaluru.

In January 2022, the NCLAT upheld the CCI's ruling, which brought Meru before the Supreme Court.

Pressing the case before a top court bench led by Justice L Nageswara Rao, Meru's counsel alleged that Ola's anti-competitive practices were adversely affecting it and the NCLAT’s decision should be reconsidered.

Ola's counsel countered that the competition law would kick in only if prerequisites such as an established dominant position of a player in the relevant market were met. The tribunals had found that Ola was not even in a dominant position, let alone abuse the said position, the counsel said.

The apex court agreed to hear the case and issued a notice. It will examine the questions of law concerning the abuse of dominant position as stated in the competition law.