The Superintendence of Industry and Commerce is carrying out investigations against the three platforms. The process could end in fines of up to 100,000 minimum wages for each company.

The Superintendency of Industry and Commerce, as the sole authority for the protection of free competition in Colombia, initiated investigations against the companies involved in the operation of the Uber, Didi and Cabify platforms in the coffee-growing country.

The purpose of the actions is to determine whether those investigated had violated the regime of protection of competition and administrative unfair competition by having promoted the provision of transport services in breach of the regulation of the sector and under conditions that would have generated competitive advantages for the benefit of the providers that are linked to the platforms.

Given the powers of the SIC, the investigations will be framed in an analysis of respect for the rules that protect free and fair competition.

Therefore, “the analysis of the competition authority will not focus on establishing whether the platforms directly provide the transportation service, since this is not related to the purpose of the administrative actions.”

Preliminarily, the competition authority considered that those investigated had promoted the illegal provision of transportation services by having exerted a determining influence on the organization, planning and provision of these services through unauthorized drivers and vehicles.

This is because the platforms would make the provision of services possible and would be responsible for determining fundamental aspects such as:

1. Calculation of rates

2. Administration of the collection system

3. Setting the platform commission

4. Determination of drivers' income

“All of the above would be indicative of the fundamental influence of the platforms, which would not be limited to a simple intermediation role. Failure to comply with the regulation of the transportation sector would have generated competitive advantages for the platforms and the drivers who provide the service through them,” determines the SIC.

In particular, it would have allowed them to:

- Access the provision of the service without meeting the conditions for this.

- Define the available transport capacity.

- Establish the geographical location of the services.

- Calculate rates.

- Not incur the costs of accessing and remaining in the market.

These competitive advantages would have been obtained compared to other bidders who, by complying with the regulation, would face costs that potential violators of the norm would not assume.

Furthermore, the superintendency insists that the violation could put the safety and integrity of users at risk, since the regulation is also aimed at guaranteeing adequate conditions for the provision of the service.

The purpose of the administrative action is that, with the arguments presented by the platforms and the participation of anyone who has a direct interest, it is determined whether or not the investigated activity is in accordance with the regime of free and fair competition.

SANCTIONS AND FINES THAT THE INVESTIGATION COULD LEAVE

In order to guarantee the rights of those investigated, the Superintendence of Industry and Commerce of Colombia has initiated three separate investigations for each of the platforms. The legal entities linked to these actions are Cabify, Didi, Uber and Lieber.

In the event that the alleged conduct is proven, the Superintendency may impose fines of up to 100,000 SMLMV on each legal entity.

Additionally, it may impose orders aimed at ensuring that the conduct of the economic activities of those investigated is in accordance with the applicable regulations on free and fair competition. Against this decision will not be any resources.