There is no appeal against this decision of the SIC.
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The Superintendence of Industry and Commerce, as the sole authority to protect free competition, has opened investigations against companies involved in operating the platforms Uber, Didi and Cabify in Colombia.
The purpose of these proceedings is to determine whether the persons investigated have violated the Competition Protection and Unfair Administrative Competition Law by doing so. Encouraged the provision of transportation services in violation of regulationsIn the sector and under conditions that would generate competitive advantages for service providers linked to platforms.
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Given the powers of the Special Investigation Committee, investigations will be framed within the framework of a respectful analysis. Rules that protect free and fair competitionTherefore, “the Competition Authority’s analysis will not focus on determining whether the platforms directly provide the transportation service, as this is irrelevant to the objective of the administrative procedures.”
Initially, the Competition Authority considered that the persons investigated promoted the provision of transport services illegally by exercising decisive influence on the organisation, planning and provision of these services through unauthorised drivers and vehicles. This is because the platforms make the provision of services possible and will be responsible for determining key aspects such as:
- Calculate prices
- Collection System Management
- Determine the platform commission
- Drivers’ income determination
“All of the above would be indicative of the fundamental impact of platforms, which would not be limited to a simple mediation role. Failure to comply with the regulation of the transport sector would have generated competitive advantages for the platforms and the drivers who provide the service through them.
In particular, it would allow them to:
- Access to the service without meeting the conditions for that
- Determine available transport capacity
- Geolocation of services
- Calculate rates
- Lack of costs to access and stay in the market
These competitive advantages could have been obtained compared to other bidders who, by complying with the regulation, would face costs that would not be borne by potential violators of this rule. Furthermore, the Authority insists that the violation could endanger the safety and security of users, as the regulation also aims to ensure appropriate conditions for the provision of the service.
The purpose of the administrative procedure is that, through the arguments presented by the platforms and the participation of any person with a direct interest, it is determined whether the activity investigated is in accordance with the system of free and fair competition or not.
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Penalties and fines that may result from an investigation
In order to ensure the rights of the people investigated, the Industry and Trade Supervision Authority has initiated three separate investigations for each of the platforms.
The legal entities associated with these proceedings are shown below: CABIFY MATRIZ SL MAXIMOBILITY SAS DIDI MOBILITY INFORMATION TECHNOLOGY PTE. LTD. CONSULTING CC SAS UBER TECHNOLOGIES INC UBER BV RASIER OPERATIONS BV LIEBER COLOMBIA SAS
If the alleged conduct is proven, the supervisory authority may impose fines of up to 100,000 SMLMV on each legal entity.
In addition, it may impose orders aimed at ensuring that the exercise of economic activities by the persons being investigated complies with applicable regulations on free and fair competition.
Against this decision there will be no resources.
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