Compat rejects Fast Track's plea in Ola matter

Posted By: PTI
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New Delhi, Mar 13: Compat has rejected Fast Track Call Cabs' plea seeking an interim order to restrain ANI Technologies, which operates cab services under Ola brand, from indulging in alleged predatory pricing activities.

Last September, Competition Commission of India (CCI) had rejected a similar plea from Fast Track Call Cabs. Dismissing the appeal, the tribunal said the question whether Ola-parent ANI Technologies has violated Section 4(2) of the Competition Act is yet to be decided by CCI.


Section 4 of the Competition Act pertains to abuse of dominant market position. "The finding/ conclusion which may be recorded by the DG and the final order to be passed by the Commission are in the realm of speculation.

"Therefore, the prayer for interim injunction made by the appellant could not have been decided by the Commission by assuming that the allegations made in the information have been proved," Compat said in an order dated March 9.

In May, CCI had ordered a detailed probe against ANI Technologies for indulging in alleged predatory pricing to keep out rivals. The decision to investigate came after it was found prima-facie that Ola Cabs was violating competition norms.

After looking into the complaint filed by Fast Track, CCI had said it is of the view that "prima facie" the conduct of Ola amounts to abuse of dominant position with respect to Bengaluru city. The Commission has directed its investigation arm -- Director General (DG) -- to probe the matter as well as look into the conduct of officials of Ola. Later in September, the watchdog declined Fast Track's plea for an interim order in the matter.

"The issue of predatory pricing by the opposite party (ANI Technologies) is already under investigation by the DG, pending which the Commission is not convinced that any interim relief is required to be granted in this case," CCI had said.


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