Govt puts Apple, Android under the scrutiny over price disparity on Uber, Ola

The government has put Apple and Android under scrutiny after confirming in the Lok Sabha on Tuesday that cab aggregators Uber and Ola have allegedly been charging different fares based on the phone’s operating system.

The issue, flagged by members of parliament (MPs), raised concerns over algorithm-driven pricing models that may be discriminating against users depending on whether they book rides from an iPhone or an Android device.

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In response to a question raised by MPs Balashowry Vallabhaneni and Ravindra Chavan, Union minister for consumer affairs Pralhad Joshi informed the Lower House that the Central Consumer Protection Authority (CCPA) had taken note of complaints about the alleged fare disparity and issued notices to Uber and Ola on 10 January 2025, seeking an explanation.

“It has come to the notice of the Department of Consumer Affairs that ANI Technologies Pvt. Ltd (Ola) and Uber India Systems Pvt. Ltd (Uber) are allegedly following price disparity for cab fares displayed on Android and iOS devices for identical rides,” the minister said in the Lok Sabha.

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“While both companies have denied any such practice, the matter has now been referred to the Directorate General (DG) for a thorough investigation,” he added.

Complaints suggest that for the same ride—with identical pick-up and drop locations, estimated travel time, and conditions—users booking via iPhones are being charged more than those using Android devices.

If proven true, such differential pricing could be classified as an unfair trade practice under India’s consumer protection laws, specifically the Consumer Protection (E-commerce) Rules, 2020, under the Consumer Protection Act, 2019 provisions.

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The government has been tightening regulations in the digital marketplace, particularly with the E-commerce Rules 2020, which bar platforms from manipulating prices or engaging in discriminatory pricing based on arbitrary factors.

The case is expected to test the extent to which Indian regulators can enforce transparency in digital services, where algorithms dictate pricing models.

On 23 January, Mint reported that the Central Consumer Protection Authority (CCPA) had issued a notice to Apple Inc. about alleged performance issues in specific iPhone models following a software update.

According to the report, CCPA, which functions under the department of consumer affairs, also sent notices to ride-hailing platforms Ola and Uber after receiving complaints about fare differences based on users’ phone models.

The notices to Apple, Ola, and Uber are part of the government’s broader efforts to regulate digital and tech platforms in India. CCPA aims to address consumer grievances and ensure fair business practices, strengthening consumer confidence in the digital marketplace.

The watchdog has also taken action against electric vehicle manufacturers, coaching institutes, travel-booking platforms, online marketplaces, consumer durables companies, influencers, and celebrities for misleading consumers or engaging in deceptive sales practices.