Illustrative image. Source: Channel NewsAsiaHanoi (VNA) – The Vietnam CompetitionAuthority (VCA) under the Ministry of Industry and Trade has decided to conducta preliminary investigation into Grab’s purchase of Uber’s stakes in Vietnam,which is suspected to breach regulations on economic concentration under the country’sLaw on Competition 2004.
The investigation will take 30 days countingfrom the day the decision was issued (April 13).
Following Grab’s announcementon March 26 about its purchase of Uber’s operation in Southeast Asia, includingVietnam, the VCA sent a dispatch to GrabTaxi requesting the provision ofinformation and documents related to the acquisition.
However, GrabTaxi claimedthat the combined market share of both Grab and Uber in Vietnam is less than 30percent, so it does not have to “inform the competition authority beforeproceeding and completing this transaction in Vietnam”.
The VCA held a working session with GrabTaxi’slegal representative on April 6, but the ride-hailing firm failed to giveevidence proving its claim.
The VCA urge the companyto carefully assess the market share after acquisition to ensure compliancewith regulations on economic concentration of the competition law beforeconducting transactions in Vietnam.
On April 12, the VCA also met with Uberrepresentative, who said the company officiallystopped operations and closed all offices in Vietnam from 11:59 pm on April 8,which means the transaction between Grab and Uber was already completed inVietnam.
Grab is one of the most frequently used O2O(online-to-offline) mobile platforms in 195 cities in Southeast Asia. More than5 million people use the combined platform daily.
Vietnam is not the only country where Grab iscurrently under fire. Other Southeast Asian countries such as the Philippines,Singapore and Malaysia, are all requesting a detailed explanation of thecompany’s acquisition of Uber out of concern about the risk of Grab’s monopolyin the market.-VNA
VNA
