Critics demand FTC veto Grab-foodpanda deal; officials, Grab respond

Taipei, July 21 (CNA) Opposition to Grab Holdings' proposed acquisition of foodpanda's Taiwan operations grew Tuesday, as a lawmaker and delivery workers urged the Fair Trade Commission (FTC) to reject the deal, while regulators pledged a competition review and Grab defended the proposed transaction.

"We are making a serious and solemn appeal to the FTC to reject the proposed acquisition," ruling Democratic Progressive Party Legislator Wang Shih-chien (王世堅) said at a press conference in Taipei.

Wang said the deal should not be approved, even with conditions, arguing that it would create a "de facto monopoly" because Uber, Grab's largest shareholder, has substantial influence over the Singapore-based ride-hailing and delivery giant.

Uber Eats and foodpanda are Taiwan's two leading food delivery platforms. They are operated locally by U.S.-based Uber Technologies and Germany-based Delivery Hero, respectively.

Uber recently agreed to acquire Delivery Hero in a US$14.8 billion deal, while foodpanda's Taiwan operations are subject to a separate proposed US$600 million sale to Grab -- which has yet to establish a presence in Taiwan. The proposed sale remains subject to FTC approval.

The FTC formally accepted the merger application for review in mid-June and must issue a decision within 30 working days, putting the deadline in late July unless it extends the review.

Also speaking at the press conference, National Delivery Union Chair Arery Chen (陳昱安) cited a study by the government-funded Institute for Information Industry that ranked Grab last among five potential buyers of foodpanda Taiwan.

"The people ultimately harmed by the resulting monopoly would be delivery workers, consumers and merchants, as we would all have fewer choices," Chen said.

Chen argued that although Taiwan would nominally retain two major food delivery platforms following the acquisition, both would effectively be under Uber's influence.

Yeh Lo-yao (葉羅堯), an associate professor specializing in cybersecurity at National Central University, said the proposed transaction could raise concerns over the handling of user information because of Grab's technological ties to Chinese telecommunications company Huawei.

Pointing to Grab's use of Huawei's mapping services and broader technology ecosystem, Yeh said the United States has identified the Chinese company as posing potential cybersecurity risks and argued that the deal therefore warranted closer scrutiny.

Officials, Grab respond

Responding to the concerns, Su Chi-yen (蘇琪彥), head of the Ministry of Economic Affairs' Department of Investment Review, said Grab's Taiwan investment application would be reviewed for issues including workers' rights, data protection and cybersecurity.

Su said that the review would involve agencies including the National Security Bureau. The FTC would also be asked to provide its assessment of the proposed business combination.

Hu Tsu-shun (胡祖舜), head of the FTC's Department of Service Industry Competition, said the commission's primary concern was whether the transaction would "impede market competition."

Hu said Uber's "substantial influence" over Grab would be an important consideration. He added that the FTC had asked Uber whether its proposed acquisition of Delivery Hero, despite excluding Taiwan, could still give it influence relevant to the Grab-foodpanda deal.

In a statement issued later Tuesday, Grab said it welcomed the "valuable feedback and support" of a coalition of 18 labor unions and pledged to prioritize the livelihoods, welfare and safety of delivery workers in Taiwan if the transaction is approved.

The company also said it would support income stability during the transition, reduce waiting times through technology and promote safer driving through in-app features.

However, Grab did not directly address concerns raised by critics over a potential market monopoly or data security.