PCC flags Grab, Uber for shutting down app

The Philippine Competition Commission (PCC) on Monday ordered both Grab Philippines and Uber Technologies Inc. to explain why the Uber app was shut down amid the ongoing review on the acquisition deal between the two companies.

“PCC is aware that there are many factors that led to the shutdown of the Uber app. This development may have rendered the review conditions to be less than ideal, however, this move shall not derail the motu proprio review of the Grab-Uber transaction,” it said.

“As of today, Uber users have received emails with a direct endorsement to transfer to Grab with it as sole provider of ride-sharing service,” the commission noted.
 
“Grab’s buyout of Uber will mean gobbling up 93 percent of the ride-hailing market,” it the commission noted.

“The parties are given until April 17 to explain why they have failed to continue operating the platform, as required in the Interim Measures Order,” the antitrust watchdog said in an emailed statement.

The order mandated both Grab and Uber to continue operating independently while the PCC conducts a review of the acquisition deal.

Should the parties fail to comply with the interim measure, the PCC earlier said they should explain “why they should not be held in contempt and subjected to penalties.”

When a big player buys out its competitor, there are be many economic and legal factors that need to be scrutinized, the commission noted.

“PCC intends to expedite the completion of the review ahead of the allowed timeframe given how it is imbued with public interest,” it said.

Uber Technologies agreed to sell its Southeast Asian business to regional rival Grab, which would result in an operational merger in the Philippines.

Uber extended its Philippine operations until April 15, with the PCC review still unfinished.

The PCC is mandated under the Philippine Competition Act to review all mergers and acquisitions valued at P2 billion and above to protect market competition and prohibit anticompetitive behavior. —Jon Viktor Cabuenas/VDS, GMA News