Grab Vietnam delays reporting on Uber acquisition
Despite being required by the Ministry of Industry and Trade to submit a report on the Uber acquisition before April 3, Grab still asked the competition authority for an extension until April 6.
Share withVnExpressApril 3 afternoon, the deadline for GrabTaxi to submit a report on the acquisition of Uber toThe Competition and Consumer Protection Department (Ministry of Industry and Trade), the agency’s representative, still completed the request. Instead, Grab asked to postpone the deadline for submitting this document until Friday, April 6.
The Competition and Consumer Protection Department has alsoaccepted the proposal but affirmed that they are closely monitoring the case. He also said that if Grab still does not submit a report by the deadline, the authorities will take further steps "to ensure compliance with the Competition Law and protect consumer rights".
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Grab taxis operating in Vietnam. |
ReplyVnExpressbeforePreviously, Mr. Do Thang Hai - Deputy Minister of Industry and Trade said that it is not impossible that the management agency will apply temporary measures to Grab and Uber after fully reviewing the report on this sales contract. He also affirmed: "Certainly, the rights of drivers and consumers will be guaranteed according to competition law".
According to the provisions of the Competition LawCompetition 2004, mergers and acquisitions (M&A) that have a significant impact on the level of market competition will be restricted. If Grab's market share after buying Uber is over 30%, the enterprise must submit a report to the competition authority about the acquisition. If the market share after the merger is over 50%, this will be restricted, unless an exemption is granted.
Public policy expert Nguyen Minh Duc said that there is still a basis to determine that Grab's purchase of Uber violates the Competition Law regardless of whether Uber or Grab is identified as a taxi or a technology company. The risk of price increases after Grab acquires Uber may occur, but the maximum increase will only be equal to that of a traditional taxi, and it is unlikely to increase further.
On March 25, Uber Technologies confirmed that it was selling its Southeast Asia business to rival Grab, marking its second retreat in Asia. In return, it will receive a 27.5% stake in Grab.From April 8, all Uber customers and drivers will switch to the Grab app.
Currently, not only Vietnam, but also many countries in Southeast Asia are requesting Grab to send a detailed report on this transaction.
