Meru Withdraws Long-Standing Case Against Ola and Uber
In a significant development within the transportation industry, Meru Travel Solutions has decided to withdraw its legal challenge against ride-hailing giants Ola and Uber. The case, which had been pending before the National Company Law Appellate Tribunal (NCLAT) for seven years, was withdrawn due to financial constraints faced by Meru.
NCLAT Proceedings and Decision
On October 20, 2023, Meru presented its position before a bench comprising Judicial Member Justice Yogesh Khanna and Technical Member Ajai Das Mehrotra. The company cited an inability to sustain the litigation due to severe operational and revenue challenges. Consequently, the bench permitted Meru to withdraw its appeal unconditionally, noting the substantial financial impact that had hindered the company’s capacity to continue the legal battle.
During the proceedings, it was recorded that Ola and Uber did not oppose Meru’s request to withdraw the appeal. This lack of opposition facilitated a smooth withdrawal process, thereby bringing an end to the long-standing legal tussle.
Background of the Competition Case
The case originated from Meru’s allegations against Ola and Uber, accusing them of engaging in predatory pricing strategies that contravened Sections 3 and 4 of the Competition Act, 2002. The allegations were initially brought before the Competition Commission of India (CCI) in 2017, focusing on the radio taxi markets in key cities like Hyderabad, Mumbai, Kolkata, and Chennai.
Meru claimed that the two companies employed financially unsustainable practices such as excessive driver incentives and consumer discounts. These tactics, Meru argued, were designed to eliminate competition by creating barriers to entry and promoting market foreclosure.
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Meru also accused Ola and Uber of spending approximately ₹13,000 crore on driver incentives in India, suggesting that the pricing strategies were intended to oust competitors by keeping prices below variable costs.
CCI’s Initial Ruling and Meru’s Appeal
On June 20, 2018, the CCI dismissed Meru’s allegations at the prima facie stage, concluding that driver incentives alone could not be classified as anti-competitive. The CCI noted that the availability of multiple aggregator platforms allowed drivers and riders the flexibility to switch services, thus mitigating any anti-competitive concerns.
Following the CCI’s decision, Meru sought recourse through an appeal to the NCLAT. However, with the recent withdrawal, the CCI’s original decision remains unaffected.
Legal Representation
In this legal matter, Meru was represented by a team of advocates including Udayan Jain, Abir Roy, Kajal Sharma, Vivek Pandey, Ranjan Mishra, Sasthibrata Panda, Harsh J, and Biyanka Bhatia. On the other hand, the respondents, comprising Ola and Uber, were represented by advocates Nisha Kaur Uberoi, Sarthak Pande, Akrathi Shetty, Rohan Bhargava, Sriharsh Peechera, Shruti Aggarwala, Samar Bansal, Rohan Arora, Aman Singh Sethi, Shivek Endlaw, and Saachi Keile.
With Meru’s withdrawal, the protracted legal saga comes to a close, leaving the CCI’s initial findings standing.
