Grab, Uber told to explain why they violated PCC's review terms

Grab, Uber told to explain why they violated PCC's review terms

Grab, Uber told to explain why they violated PCC's review terms

The PCC said Uber's shutdown of its app will not derail the motu propio review of the merger.

The commission issued on April 6 an order requiring Grab and Uber to comply with seven interim measures designed "to protect competition in a looming monopoly and ensure the welfare of the riding public and the drivers" while the transaction is under review.

The PCC also wants Grab and Uber to explain why the latter shut down, despite the commission ordering it to continue operating while the review is ongoing.

"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", said the PCC.

The ride sharing app was initially supposed to exit the country on April 8 but agreed to a request by the Philippine Competition Commission to extend operations for a week so as not to inconvenience commuters.

"The Grab and Uber apps continue to operate as normal until April 15, after which the Uber service will cease in the Philippines", Grab said on its website.

"When a big player buys out its competitor, there will be many economic and legal factors that need to be scrutinized", Balisacan said.

Singapore on Friday imposed restrictions on ride-hailing firm Grab's acquisition of Uber's Southeast Asian business until it concludes a probe into whether the sale may have infringed competition rules.

"Grab's buyout of Uber will mean gobbling up 93% of the ride-hailing market".

"The accreditation of new TNCs (transportation network company) is a welcome development to allow passengers to have more choices. We note, however, that the incoming TNCs are left with only 7% share in the market", said the commission. "This means that when you buy a firm, in effect, you also get its customer base. Our review will take into consideration these factors to level the playing field in this market".

Grab Holdings Inc. and MyTaxi.PH Inc. are acquiring the assets of Uber B.V. and Uber Systems Inc.in the Philippines as well as in Cambodia, Indonesia, Malaysia, Myanmar, Singapore, Thailand and Vietnam.

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