Antitrust agency wants Uber, Grab to operate independently beyond April 8

MANILA, Philippines — The Philippines' antitrust body on Thursday has asked Grab and Uber to continue operating their ride-sharing mobile applications independently, as the competition watchdog probes the consolidation of the two companies’ businesses.

On March 26, the two firms announced Grab will buy Uber’s ride-sharing and food delivery business in Southeast Asia, the industry's biggest acquisition in the region.

The Philippine Competition Commission on Tuesday ordered a “motu proprio” review of the deal that will focus on the local units of Grab and Uber, amid concerns that the transaction is anticompetitive.

In a public hearing in Manila, the PCC listed interim measures that must be imposed on Grab and Uber in order to prevent any “prejudice” on the commission’s power to review Grab’s takeover of Uber.

The anti-monopoly agency said it wants the two ride-hailing companies to “maintain the independence of their business operations” even as Uber’s services are scheduled to cease on April 8.

Virtual monopoly

However, a representative from Uber told the PCC that the company has no funding and staff left to run the app under the interim measure.

“We don’t intend to come back to these markets,” the Uber official was quoted as saying in media reports.

Under the deal, Uber, which invested $700 million in Southeast Asia, will get a 27.5-percent stake in the combined company and Uber CEO Khosrowshahi will join Grab's board.

Uber's departure from the country leaves Grab with a virtual monopoly of the market.

Aside from the PCC, Malaysia has also put Grab on antitrust watch as Uber exits the region.

Grab Philippines earlier said it will continue accrediting Uber drivers while the PCC conducts its probe.