Philippines, Malaysia put Uber-Grab deal under anti-competition scrutiny

MANILA: Philippines and Malaysia said today they will look into whether Uber Technologies’ move to sell its Southeast Asian business to ride-hailing rival Grab hinders competition, days after Singapore began an investigation into the deal on similar concerns.
The expanded scrutiny of the deal in Southeast Asia could pose a major hurdle to the US firm’s attempt to improve profitability by exiting its loss-making regional operation. It also comes as Grab is set to face tougher competition from Indonesian rival Go-Jek.
In a rare move, Singapore last week proposed interim measures to require Uber and Grab to maintain their pre-transaction independent pricing until it completes a review of the deal, saying it had “reasonable grounds” to suspect that competition had been infringed.
“The Grab-Uber acquisition is likely to have a far reaching impact on the riding public and the transport services. As such, the PCC is looking at the deal closely,” the Philippine Competition Commission (PCC) said in a statement.
It said the deal will put Grab in a virtual monopoly in the ride-sharing market, and its review will determine whether the transaction substantially reduces competition, adding it was meeting representatives of Grab and Uber today.
Should anti-competitive concerns arise, Uber and Grab may propose commitments to remedy. In the event they will not submit voluntarily, the commission could open a case that may block the deal, it said.
Malaysia also said today that it will monitor Grab for possible anti-competitive behaviour.
“We won’t take it lightly. We will monitor this because it is still early days and we don’t know what will happen next,” said Minister in the Prime Minister’s Department Datuk Seri Nancy Shukri, whose portfolio oversees the public transport licensing authority.
“We have stressed that if there is any anti-competitive behaviour, the Competition Act will come into force. We have spelt this out to them,” Nancy said, referring to a meeting with Grab representatives last Monday.
In Indonesia, the anti-monopoly agency said it can’t say yet whether they will investigate the deal, as there are 30 days after the deal is finalised to assess it. – Reuters