PCC looking at reviewing Grab-Uber deal ‘motu proprio’

The Philippine Competition Commission (PCC) is looking at the possibility of reviewing the move of Grab to buy the Southeast Asian business of Uber Technologies Inc. motu proprio.

“The Grab-Uber acquisition is likely to have a far-reaching impact on the riding public and the transportation services,” the antitrust watchdog said in an emailed statement on Monday.

“As such, the PCC is looking at the deal closely with the end view of potentially reviewing it for competition concerns, as a notified transaction, or by opening a motu proprio case,” it said.

As a motu proprio case, the PCC can review business transactions on its own, without any notification from the companies involved in mergers and acquisitions (M&A) that fall within the purview of the antitrust law.

Uber Technologies agreed to sell its Southeast Asian business to regional rival Grab.

As a result, the companies will implement an operational merger in the Philippines.

Under the Philippine Competition Act (PCA), the PCC is mandated to review all M&As valued at P2 billion and above to ensure the deal would not result in anti-competitive practices in the country.

On the heels of the acquisition deal, Uber will be available in the Philippines only until April 8.

“PCC recognizes that the exit of Uber in the Philippines will put its rival Grab in virtual monopoly in the ride-sharing market until the new players come into operation,” the PCC said.

“Should anticompetitive concerns arise out of the transaction review, the parties may propose commitments to remedy, mitigate, or present the negative effects to competition in the market after the acquisition,” it said.

The PCC earlier said it will have to review the acquisition deal if it fits the P2-billion threshold in terms of transaction size that would require a notification.

“If the transaction is notifiable, Grab and Uber are not allowed to consummate the deal without PCC approval,” the PCC noted.

“If the transaction does not meet the threshold and is not notifiable, the parties are not so precluded but Grab and Uber are urged to allow a voluntary review to take its course before consummating to minimize the need to unscramble the deal if found to have anti-competition concerns,” it said.

The Land Transportation Franchising and Regulatory Board (LTFRB) is now processing the applications of three other ride-hailing firms.

The Malaysian government also said on Monday it will monitor Grab for possible anti-competitive practices, Reuters said in a separate report.

“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,” government minister Nancy Shukri was quoted as saying in the report.

“We have stressed that if there is any anti-competitive behavior, the Competition Act will come into force. We have spelt this out to them,” Shukri said. —VDS, GMA News