SCPEC: Yandex operating by unfair competition rules
The RA State Commission for Protection of Economic Competition began studying the activities of Yandex Taxi service, Chairman of RA SCPEC, Artak Shaboyan said during a session in Moscow.
He stated that the Commission is currently examining the case of companies, organizing their services via electronic platforms. This refers to Yandex taxi service that has recently entered the market. The Commission began investigating the company’s behaviour on its own initiative since cases of possible violations of competition law have been observed in the company’s activities.
Shaboyan said the starting conditions have originally been extremely beneficial for the company. Unlike individuals or companies providing the same service, Yandex does not pay the licensing fee, income tax and license fee for drivers, which is compulsory for others.
According to the press service of the Commission, the study of the company's behaviour has identified a number of circumstances, which show that the company operates by unfair competition rules. For example, Yandex pays AMD 500 to the drivers for the minimum order, which is illogical from the business point of view.
As there are other taxi services (GG Taxi, Moby Taxi) operating via electronic platforms, the Commission is also investigating their behaviour. At the end, the Commission will publish its decision on violation.