PCC launches ‘motu proprio’ review of Grab-Uber deal

The Philippine Competition Commission (PCC) launched on Tuesday a motu proprio review of the acquisition by Grab Holdings Inc. of the Southeast Asian business of Uber Technologies Inc.

“Yes, we did,” PCC Chairman Arsenio Balisacan told GMA News Online.

In Commission Resolution dated April 3, the PCC ordered its Mergers and Acquisitions Office (MAO) to conduct a motu proprio review of the transaction as it may likely lessen competition in the ride-hailing sector in the country.

As a motu proprio case, the Grab-Uber deal can be reviewed by the PCC without any notification from the companies involved in mergers and acquisitions (M&A) that fall within the purview of the antitrust law.

“A preliminary assessment of the transaction conducted by the Mergers and Acquisitions Office (MAO) indicates that there are reasonable grounds that the transaction may likely lessen, prevent, or restrict competition substantially,” the resolution read.

“The preliminary assessment also indicates that the riding public and partner drivers may be adversely affected by the transaction,” it said.

The resolution was signed by Balisacan as well as Commissioners Johannes Benjamin Bernabe, Stella Luz Quimbo, and Amabelle Asuncion.

The PCC said on Monday it was open to reviewing the transaction motu proprio as the acquisition was likely to have a far-reaching impact on the riding public.

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

The Philippine Competition Act mandates the antitrust watchdog to review all mergers and acquisitions worth P2 billion and above to make sure these would not result in anti-competitive practices.

While the Grab-Uber deal is not covered by compulsory notification requirements, the PCC said it will review the transaction because of its market implications.

“The same preliminary assessment also indicated that the riding public and partner drivers may be adversely affected by the transaction,” the PCC said in an emailed statement.

“The Commission also found that the transaction will result in a substantial increase in concentration of an already highly concentrated market in an industry that provides a basic public service,” it said.

Under its implementing rules and regulations, the first phase of a PCC review may take 30 days. A second phase review, if warranted by results of the first phase, will take another 60 days.

If no decision should come from the PCC within 90-day review period, the transaction would be deemed approved. —VDS, GMA News