Grab-Uber merger may result in ‘virtual monopoly’, says PCC

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Antitrust authority, The Philippine Competition Commission (PCC) has expressed their concerns regarding the Grab-Uber merger in a press release. They say that it will have a “far-reaching impact” on commuters and transport services alike.

uber grab yugatech • Grab-Uber merger may result in 'virtual monopoly', says PCC

They have also said that they recognize that the removal of Uber from the equation will result in Grab achieving virtual monopoly until new ride-sharing players enter the market.

The PCC has met with both companies to determine whether or not the deal can actually be approved, in compliance with the Philippine Competition Act, which exists to ensure real competition in a given market.

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The commission will be reviewing the transaction to see if it is notifiable. The criteria for an acceptable threshold of the size of transaction is:

  • the aggregate value of assets in the PH of Uber exceeds PHP2B; AND
  • the aggregate gross revenues generated in or into the PH by assets acquired in the PH and assets acquired outside the PH collectively exceed PHP2B.

If anticompetition issues arise, both parties “may propose commitments to remedy, mitigate, or prevent the negative effects to competition in the market after the acquisition.” On the flip side, non-cooperation from both parties gives the PCC grounds to flat out block the deal.

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louie
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