Commission absolve Uber from prosecution

October 20, 2016 2:17 pm0 comments

uberJOHANNESBURG – The Competition Commission has  resolved not to prosecute the Metered Taxi Industry against technology company Uber.

The Commission has taken a decision not to prosecute a complaint filed by the Metered Taxi Industry against Uber Technology (Pty) Ltd (Uber). In the complaint, the Metered Taxi Industry had raised concerns Uber operates unfairly in that it secures partnerships with multinational companies and this gives it unparalleled access to the market.

Metered Taxi Industry (MTI) has over the years raised alarms’ that Uber misleads the public by its concept of job creation for drivers and does not comply with South African public rules and regulations.

“Uber floods the market with vehicles because it does not have to comply with licensing and other public transport regulations; and         Uber charges prices that are below costs “according to the MTI.

The Commission has conducted an investigation into these allegations and has taken a view that the alleged conduct does not contravene the Competition Act.

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.

In the  past violence  has broke out when taxi operators protested against the presence of the taxi service Uber in Johannesburg  and other cities . Uber, widely perceived as one of the safest options available, has come under fierce attack from metered taxi operators, who said they would “burn Uber down” because the service was making it impossible for them to make a decent living.

CAJ News

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