MANILA — The Philippine Competition Commission (PCC) said Monday that it is closely looking into the acquisition deal between Grab and Uber, adding that the antitrust body will ensure that the transaction will not harm the interest of the riding public.
In a statement, the PCC has urged the parties to undergo voluntary review of the deal, if the transaction does not meet the requirements for mandatory notification.
Under the new mandatory threshold, entities involved in mergers and acquisitions shall notify the PCC if the size of transaction breaches PHP2 billion and PHP5 billion for size of the party.
The PCC has reminded the parties that if the deal is notifiable, Grab’s acquisition of Uber should not yet push through until the Commission has reviewed and approved the transaction.
“If the transaction does not meet the threshold and is not notifiable, the parties are not so precluded but Grab and Uber are urged to allow a voluntary review to take its course before consummating to minimize the need to unscramble the deal if found to have anti-competition concerns,” the Commission said, on the other hand.
“Should anti-competitive concerns arise out of the transaction review, the parties may propose commitments to remedy, mitigate, or present the negative effects to competition in the market after the acquisition,” the PCC added.
But if the parties refuse to undergo a voluntary review, the Commission cautioned that it can launch a motu proprio investigation on its own initiative regarding the transaction.
The Commission said the review aims to determine if the Grab and Uber merger will substantially lessen the competition in the ride-sharing market in the Philippines.
The PCC will evaluate and analyze if the acquisition will result in a fare increase, deterioration of service, lesser competition, and how it will fairly compete once new transport network companies enter the market.
“PCC recognizes that the exit of Uber in the Philippines will put its rival Grab in virtual monopoly in the ride-sharing market until the new players come into operation,” the antitrust body said.
“The Grab-Uber acquisition is likely to have a far reaching impact on the riding public and the transportation services. As such, the PCC is looking at the deal closely with the end view of potentially reviewing it for competition concerns, as a notified transaction, or by opening a motu proprio case,” the Commission said.
PCC officials met with representatives of Grab and Uber Monday to determine if their deal warrants closer scruitiny.
“The consultation is taken as a sign of the parties’ willingness to comply with the provisions of the Philippine Competition Act, including ensuring real competition among ride-hailing options and promoting the welfare of the riding public,” said PCC.
“PCC is committed to ensure that Grab’s acquisition of Uber in the Philippines will not harm the interest of the riding public,” it added. (Kris Crismundo/PNA)
