South Africa: Commission puts Uber under microscope

The Competition Commission still has to decide if Uber, the technology company that connects passengers with professional drivers, has contravened the Competition Act.

This follows the SA Meter Taxi Association lodging a complaint with the commission on November 27, alleging Uber was engaged in predatory pricing and other anti-competitive practices. Predatory pricing involves setting prices below cost in an attempt to eliminate competition.

Itumeleng Lesofe, a spokesman for the commission, confirmed on Friday that the complaint was still under investigation and the commission was still determining whether or not there had been a contravention of the Competition Act, as alleged. “At this stage, we cannot determine when this investigation will be completed,” he said.

Attempts to obtain comment from Uber were unsuccessful. However, Uber was previously reported as stressing that it did not own any vehicles, but licensed technology to transport operators who could then connect with people wanting a ride.

There have been clashes between Uber drivers and taxi operators from the metered taxi industry, who claim Uber is crippling the industry.

Full Content: IOL

Want more news? Subscribe to CPI’s free daily newsletter for more headlines and updates on antitrust developments around the world.