Consumer group wants LTFRB to stop 'meddling' in review of Uber-Grab deal

MANILA, Philippines — A consumer group on Tuesday urged the country’s transport regulator to “stop meddling” in the ongoing review of the consolidation of businesses of ride-hailing companies Uber and Grab, amid concerns that the deal is anticompetitive.

Last month, the two companies announced that 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 last Saturday ordered Uber and Grab to delay the integration of their businesses and continue their separate operations while the antitrust agency examines the domestic implications of the merger. The pair was slapped with a similar command in Singapore.

But the Land Transportation Franchising and Regulatory Board, or LTFRB, questioned the PCC’s directive, saying Uber has no funding and staff left to run the Uber app because the California-based firm has already exited the region.

To note, the PCC’s order did not indicate a deadline for final decision.

“The Competition Act vests in the PCC the primary power to review and decide on the deal in accordance with the law. Let the PCC complete the review of the deal,” Atty. Vic Dimagiba, President of Laban Konsyumer Inc., said in a press statement.

“Any public statement supporting the shutdown of Uber by LTFRB could undermine the PCC review processes,” he added.

Dimagiba said LTFRB should instead act on pending applications of new entrants that will fill up the void left by Uber. 

"No turf war please," he said.

Under the agreement, 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.

Despite the LTFRB’s doubt over the order, the PCC has maintained that Grab’s takeover of Uber is within the commission’s jurisdiction, ABS-CBN News reported on Monday.

To comply with the competition watchdog’s directive, Grab Philippines said it will shoulder the costs of keeping the Uber app running until April 15, although the extended operation would have “limited functionality and little or no support.”