Relevant Market on Online Traffic Transportation

Abstract

In sharing economy era, online traffic transportation such as Uber, Go-Car, GrabCar has disrupted taxi industries as an incumbent in conventional traffic transportation. Taxi industries has been accusing online traffic transportation for conducting unfair business due to their existence cannot be subjected in any existing law. The existence of online traffic transportation remains unclear because they are new comers which bring new modes of transportation and new business model in traffic transportation industry. Therefore, it has direct impact to a market once dominated by conventional taxis. The objectives of this research are the following: a) to analysis online traffic transportation and conventional traffic transportation in the same market or not; b) to know comprehensively implementation on competition law towards online traffic transportation as a disruptor. The research will be used juridical normative approach by using statutory approach to determine the relevant market between Uber, Go-Car, GrabCar and Taxi remains important as the first step to know whether there is any violation of competition law and whether Competition Law can be imposed in online traffic transportation as a disruptor in conventional traffic transportation industry by the form of qualitative and descriptive. Identifying relevant market and violation of competition is using juridical normative approach to know legal norms and legal views regarding these matters. Online traffic transportation operates under Transportation Network Companies (TNCs). Meanwhile, conventional traffic transportation operates under transportation companies. In the future scenario, online traffic transportation might harm competition because their existence might drive out incumbents which lead to serve the entire transportation market and become monopoly that the winner-takes-all nature. Therefore, between online and conventional traffic transportation is complement each other others. They both have different products and characteristic. They don’t exist in the same relevant market. Also, imposing Competition Law might be happening due to sake of consumers which might be harmed if monopoly practices by disruptors happen.