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Metered taxi drivers lose CompCom battle against Uber

Staff Writer
By Staff Writer, ITWeb
Johannesburg, 20 Oct 2016
The Competition Commission does not believe Uber's conduct has contravened the Competition Act.
The Competition Commission does not believe Uber's conduct has contravened the Competition Act.

The Competition Commission says it has taken a decision not to prosecute a complaint filed by the metered taxi industry against Uber.

The metered taxi industry was looking for relief from the Competition Commission claiming that Uber floods the market with vehicles because it does not have to comply with licensing and other public transport regulations and that it charges prices that are below costs.

Another complaint was that the app-based taxi company "misleads the public by its notion of job creation for drivers and does not comply with South African public rules and regulations". Metered taxi drivers also argued that Uber operates unfairly because it secures partnerships with multinational companies which gives it unparalleled access to the market.

"The Commission has conducted an investigation into these allegations and has taken a view that the alleged conduct does not contravene the Competition Act," it said in a statement.

In terms of the Competition Act, the metered taxi industry has 20 business days to refer the complaint directly to the Competition Tribunal if it disagrees with the Commission's decision.

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