(Eagle News) — The Philippine Competition Commission has ordered ride-hailing service Uber to continue operating its app pending the PCC’s review of the Uber-Grab deal.
“The PCC believes that Uber is capable of operating its ride-hailing app in the country, despite its claims that it has already exited the Southeast Asia market,” PCC Chair Arsenio Balisacan said in a statement.
According to Balisacan, while Uber was “highlighting the exit,” it “does not emphasize enough its integration with Grab.”
“Thus, Uber is not truly exiting the Philippine market, but rather effectively merging their operations with Grab here. The deal makes Uber a part-owner of Grab,” Balisacan said.
For Balisacan then, the move by Uber in the Philippine market “leads to further substantial concentration of what is, to begin with, an already highly concentrated ride-sharing market.”
He said the “virtual monopolization of the market by Grab” then “can harm the riding public,”
“Uber’s compliance with our antitrust counterpart in Singapore to extend the operation of its app indicates the feasibility of continuing its operations in the Philippines as well,” Balisacan said.
The PCC also issued interim measures on Grab’s acquisition of Uber in the country.
Grab and Uber, according to the PCC, should operate independently, and the other conditions prior to March 25, 2018 should remain, among others.
The PCC said, however that Uber employees were allowed to seek employment opportunities elsewhere, and Uber drivers were allowed to switch to Grab or use both.
