Accusations of anticompetitive behavior surround Uber

CAIRO – 24 April 2017: The Egyptian Competition Authority (ECA) has reportedly filed a complaint against ride sharing giant Uber with the prosecutor general for not providing the required data to clear up its situation in another complaint alleging misuse of its dominant position in the Egyptian market and carrying out monopolistic practices.

“Uber refused to provide the required data to prove that it was not involved in anticompetitive practices,” said Mona El-Garf, the head of the ECA. El-Garf mentioned that they have not yet found any violations against the U.S.-based company which harm competition. The only violation proven so far is the failure to submit the requested data.

In December, Careem and Ousta, both ride sharing apps competing with Uber in the Egyptian market, filed a complaint to the ECA accusing Uber of anti-competitive behavior in the domestic market when the company cancelled its 20 percent commission for the period from November 2016 to February 2017. Uber announced that the cancellation of its commission was part of its promotional offers to stimulate activity in Egypt. Uber has not commented publicly on the accusations.

The latest complaint comes just after Uber CBO Emil Michael visited Cairo earlier this week. He held several meetings with key stakeholders during the visit, and also met with Minister of Investment Sahar Nasr and Minister of Transportation Hisham Arafat.

Michael’s visit was hosted by RiseUp, a platform which links entrepreneurs, where he shared his career experience, ideas on entrepreneurship and advice with Egyptian youth.

“At Uber, we are passionately committed to our idea, our product, and our industry. When I came here to Egypt, I saw the same passion amongst a lot of start-ups,” Michael said, according to a Sunday press release. “Egypt is the new Silicon Valley [and] ... is a fertile ground for start-ups,” he said. He noted that the Egyptian marketplace is considered a great test to various products and services in the field of technology.

“The unique combination of history, resources, and people in Egypt makes us keen to keep investing in the Egyptian market,” Michael added.