Exit of Uber in PH Will Put Grab in Virtual Monopoly, PCC Claims - TeknoGadyet
Vivo Philippines
Vivo Philippines

Post Top Ad

Post Top Ad

Tuesday, April 3, 2018

Exit of Uber in PH Will Put Grab in Virtual Monopoly, PCC Claims

The Philippine Competition Commission (PCC) recently released their official statement about the Grab-Uber acquisition, ensuring that the merger will not harm the interest of the riding public in the Philippines.

Exit of Uber in PH Will Put Grab in Virtual Monopoly, PCC Claims
Exit of Uber in PH Will Put Grab in Virtual Monopoly, PCC Claims

As the antitrust authority of the country with the mandate to protect competition in the market and prohibit anticompetitive conduct, PCC is set to review the merger of two players in the ride-sharing market. With this, they eye to evaluate and analyze if after the acquisition, prices will likely increase; ride-sharing will deteriorate; passengers will effectively have less options; and how likely other new transport companies have a chance in a fairly competing against the merged firm.

Moreover, PCC noted that the exit of Uber in the country will put Grab in virtual monopoly, unless new players will come into operation.

See Also: Grab Acquires Uber’s Southeast Asia Ride-Hailing Business

In compliance with the Philippine Competition Act, PCC has met with both parties to see if the transaction is notifiable in the country. Here are the applicable thresholds for the size of transaction:

(i) the aggregate value of assets in the PH of Uber exceeds Php2B; and

(ii) 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.

Meanwhile, PCC said that both parties may propose commitments to remedy or mitigate once anti-competitive concerns arise out of the transaction review. On the other hand, if they don’t submit voluntarily, PCC may open a case that can block the deal in the country.

Source

No comments:

Post a Comment

Post Top Ad

Advertise With Us
close
OPPO F7