PCC urged to probe sale of Uber’s business to Grab

Consumer advocacy group Laban Konsyumer, Inc. (LKI) has urged the Philippine Competition Commission (PCC) to investigate the sale of Uber’s ride-sharing and food delivery services operation in Southeast Asia to rival Grab to determine if anti-trust law violations will emerge from the transaction.

This is despite the fact that no notification has been filed at the PCC yet by Grab or Uber to date in view of the former’s acquisition of its rival’s ridesharing and food delivery services in Southeast Asia, according to the country’s anti-trust body Philippine Competition Commission (PCC).

“If the parties meet the new threshold, now set at R2 billion for Size of Transaction and R5 billion for Size of Party, they should notify at the PCC within 30 days after signing of their definitive agreement,” said PCC Chairman Arsenio M. Balisacan.

The PCC said it was awaiting for a major development on Wednesday thus it could yet release a statement yet.

It expressed optimism to issue a statement after the Holy Week yet or by next week.

The PCC though was also reportedly meeting Grab and Uber officials on Monday, April 2.

Uber was given a 27.5% stake in Grab as payment for the acquisition of Uber’s business in SE Asia.

The PCC, however, can initiate investigation moto propio even if the concerned parties did not notify the anti-trust body of the transaction.

In the past, the anti-trust body conducted a probe on the alleged garlic cartel operation in the following Senate hearing that exposed such operation.

LKI President Victorio Mario Dimagiba pointed out that the sale has raised many questions for the regulators to investigate and take appropriate action.

“Why sell to a fellow competitor in the country knowing very well that Uber and Grab are the most liked TNVs (transport network vehicles) in the country. There are many mega rich businesses in the country that can run Uber’s technology. That's Uber assets. Uber do not own the vehicles but the operators, and the drivers whom I shall call micro entrepreneurs,” Dimagiba said.

Uber had past encounter with the Land Transportation Franchising Regulatory Board where they paid a hefty R160 million fines.

They opposed the cap on running TNVs. Their assets are in technology and software, LKI said.

In terms of assets, Dimagiba said the competition law under Republic Act in 10667 in Section 3 would authorize the PCC to include Ubers assets sold outside the Philippines in the application of the law.

“I believe the current threshold will be met to allow the PCC to review the deal,” he said.

Beyond the merger and acquisition rules, he said, there are so much on the plate that PCC and LTFRB can take moto propio at the proper time.

“Will this sale breeds anti-competitive practices prohibited in section 12 , 14 and 26 of the competition law. there are no thresholds to perform this function,” he added.

“These are the powerful provisions of the law. The impact to consumer welfare is at stake here.”

“LKI calls this sale and investigation all for consumer welfare. We need a proactive regulators. Uber moves so fast that we cannot yet smell or see the pudding on the cake,” Dimagiba said.

Likewise, LKI has urged Congress to act on various bills on transport network vehicle services.