The Competition Authority of Kenya has begun investigations on whether the move by taxi hailing firm Uber to lower prices breached competition laws.
Of concern to the regulator is the fact that Uber may have employed predatory tactics in its quest to lure customers to its service and look out competition.
CAK Director General Wang’ombe Kariuki said on Tuesday that the watchdog had received a formal complaint by one of the players in the industry and was currently reviewing the pricing structure.
“The competition authority of Kenya would be concerned about pricing when any dominant firm prices below average variable costs or what we call predatory practice. As it it stands now we have received a complaints from one of the competitors of Uber and what the authority is doing is gathering data on whether they have been pricing is below the average variable cost,” Mr Wang’ombe said in an interview.
Full Content: The Star
Want more news? Subscribe to CPI’s free daily newsletter for more headlines and updates on antitrust developments around the world.