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Grab gets more time to solve problems



REUTERS

DR STAVE antitrust surveillance has continued its monitoring of Grab Philippines, citing "worries about continued competition" a year after the company received conditional approval to acquire Operation Uber in the country.

In a statement Tuesday, the Philippine Competition Commission (PC) said it had extended the effectiveness of Grab's voluntary commitments by October 20 to allow talks on new or amended obligations that would be effective for another period still to be agreed. .

"Exactly one year after the PC reached a Grab Acquisition Decision from Fisher Uber on August 10, 2018, the Competition Authority reveals that the merged firms' dominance remains unresolved and competition has not improved in the driving market," the watcher said. says in his statement.

Following concerns about competition when Grab acquired South East Asia's business in Uber last year, PC gave the merger conditional approval, subject to a year-long upgrade of Grab's voluntary work commitments that include improved quality of service, transparency of service pricing comparable to pre-business levels in South East Asia in Uber, removal of "see destination" feature for drivers, drivers and driver non-exclusive, incentive monitoring Annecy and plan for improvement.

"These efforts are designed to maintain market conditions such as Uber or other competitors to be present to impose competitive restrictions on Grab," PF said in a statement.

"The obligations were also designed to prevent Grab from making the entry and growth of new players into the mail market difficult."

The one-year probationary period expired last Saturday, but PC President Arsenio M. Balisacan cited the need for a new set of obligations that is "fair and reasonable and which protects consumers from the currently unresolved Grab domination".

The observer said the new commitments may be similar to the old ones, but with adjusted metrics.

"We hope to raise the level of competitive market intensity and bring market conditions that are conducive to new entrants," the statement quoted by Mr Balisakan as saying.

Get Legal Advisor Erasto Miguel G. Aguila told reporters in a message to Weber that the company was "talking to PC … how to proceed."

PF said that if it failed to complete talks with Grab on new commitments by October 20, it would reconsider the conditional license it granted to the company to acquire Uber's business in the country.

"On the one hand, obligations can prevent Grab from controlling the use of his market power as a virtual monopoly. On the other hand, we also strive to allow smaller players to grow or create new competitors to enter the marketplace which will be more beneficial to the public. " Balisacan. – Denise A. Valdez


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