VIETNAM: MINISTRY OPENS INVESTIGATION INTO GRAB'S ACQUISITION OF UBER
Last Updated: 2018-04-16
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HANOI, Vietnam April 16 (NNN-BERNAMA) --The Vietnam Competition Authority (VCA) has decided to conduct a preliminary investigation into Grabís purchase of Uberís stake in Vietnam, which is believed to have breached regulations on economic concentration under the Law on Competition 2004, Vietnam News Agency (VNA) reported.

The investigation will take 30 days from the day the decision was issued (April 13).

Following Grabís announcement on March 26 about its purchase of Uberís operation in Southeast Asia, the VCA, under the Ministry of Industry and Trade, sent a dispatch to GrabTaxi requesting the provision of information and documents related to the acquisition.

However, GrabTaxi claimed that the combined market share of both Grab and Uber in Vietnam is less than 30 per cent, so it does not have to ďinform the competition authority before proceeding and completing this transaction in VietnamĒ.

The VCA also held a working session with GrabTaxiís legal representative on April 6, but the ride hailing firm failed to give evidence proving its claim.

On April 12, the VCA also met with Uber representatives, who said the company officially stopped 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 in Vietnam.

Vietnam is not the only country where Grab is currently under fire. Other Southeast Asian countries such as the Philippines, Singapore and Malaysia, are all requesting a detailed explanation of the companyís acquisition of Uber out of concern about the risk of Grabís monopoly in the market.--NNN-BERNAMA