“The income of more than 100,000 families is at stake.”

In recent years, in Colombia and around the world, platform-based transportation services have gained increasing importance and popularity in the market. These services provide the ability to get from one place to another at an affordable cost, and also provide a level of trust and security not always found in traditional public transportation systems.

According to the SIC statement, “The purpose of the proceedings is to determine whether and in what circumstances the investigated persons have violated the system of competition protection and unfair administrative competition by promoting the provision of transport services in violation of the sector regulation.” This would have generated competitive advantages in favor of service providers linked to the platforms.

The entity will conduct a comprehensive analysis regarding compliance with regulations governing free competition. Therefore, in no case will it be assessed whether the platforms are directly involved in the provision of the transportation service, since this aspect is not related to administrative procedures.

The entity will conduct a comprehensive analysis regarding compliance with regulations governing free competition. | picture: Guillermo Torres

However, they point out that the companies under investigation would have promoted the illegal provision of transportation services by exercising a decisive influence in the organization, planning and implementation of said services through drivers and vehicles not licensed for this purpose.

In this way, the entity ensures that the platforms will not only exercise an intermediary function, because they also deal with aspects such as setting prices, collection, platform commissions, and determining drivers’ income. These facts point to the fundamental influence of platforms, which goes beyond their role as intermediaries.

Responding to transfer requests to SIC

Given the industry and trade watchdog’s decision to file charges against mobility platforms, Alianza In, an association dedicated to apps and innovation, calls for regulation rather than persecution or bans.

It is important to remember that the Supreme Court, in its ruling SC-370 issued at the end of 2023, noted that “administrators of justice must exercise caution when examining whether corresponding provisions address new problems, because otherwise,” They simply become legal and irrational obstacles to viewing and enjoying products through ICT.

Moreover, the Court reaffirmed that the enjoyment of scientific and technological progress is a human right. Elsewhere in the ruling, the court also stressed that technology in itself does not constitute a means of unfair competition, during a legal dispute in which Uber won a case against the taxi company in that case.

“At Alianza In, we also want to remember that this research is not done in the abstract, but the fate of at least 100,000 families is at stake (Fedesarrollo, 2021) who obtain their livelihoods through mobility applications. “At Alianza In, Alianza In, the ban and/or persecution of these applications threatens the popular economy and the fight against socio-economic inequality, which are the main pillars of President Pietro’s government.

In addition to the above, it offers the freedom to choose from at least 8 million Colombians who navigate through mobility apps, with two women for every male user.

Unions of taxi drivers and app drivers are awaiting the development of a possible ban on the platforms.

In addition to the above, it offers the freedom to choose from at least 8 million Colombians who navigate through mobility apps, with two women for every male user. | picture: Getty Images/Formation Week

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