FTC extends review of Grab-foodpanda Taiwan deal to Oct. 27

Taipei, July 22 (CNA) The Fair Trade Commission (FTC) on Wednesday extended its review of Grab's proposed acquisition of foodpanda's Taiwan operations to Oct. 27, saying more time was needed to assess the potential impact of Uber's 13 percent stake in Grab on competition.

The commission said in a statement that, in accordance with the Fair Trade Act, it had extended the review period by 60 working days, moving the deadline from July 29 to Oct. 27.

The FTC said that questions remained over whether Uber's stake and 3.7 percent voting rights in Grab could affect Uber Eats' and Grab's "incentive and ability" to compete after the acquisition.

It therefore said "further analysis" was needed to determine the deal's impact on competition in Taiwan.

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

Uber recently agreed a US$14.8 billion deal to acquire Delivery Hero, excluding foodpanda's Taiwan operations, which are subject to a separate proposed US$600 million sale to Grab Holdings.

Grab, a Singapore-based ride-hailing and delivery company yet to launch services in Taiwan, submitted a complete merger application on June 16.

This triggered an initial 30-working-day review period that would otherwise have expired on July 29, according to the FTC.

The FTC's announcement came after several dozen delivery workers and supporters protested outside the commission's office in Taipei earlier Wednesday, urging the regulator to reject the proposed acquisition over concerns it could create a de facto monopoly.

Chanting "Fight monopolies, demand competition," the protesters held placards, with some standing beside motorcycles they use to make deliveries.

"Platforms can pursue acquisitions, but we cannot allow Taiwan's market to be left with two companies in name only that, in practice, share common interests and do not genuinely compete," said Arery Chen (陳昱安), chair of the National Delivery Union, which organized the protest.

Chen said the union did not oppose Grab's entry into Taiwan, but argued that the extent of Uber's influence over Grab should be clarified, particularly given that Uber is Grab's largest shareholder.

Delivery worker Leo Hsu told CNA that workers like him would "probably be in a pretty bad situation" if the acquisition went ahead, warning that if Taiwan's two leading delivery platforms both came under Uber's influence, the resulting lack of competition could allow prices and commissions to be dictated.

"If it [Uber] monopolizes the market, whatever price it sets for an order is what consumers will have to pay," Hsu said. "There would be no one to keep it in check because there would be no competition."

Hsu, who has worked as a delivery courier for nine years and currently delivers for both Uber Eats and foodpanda, said couriers' bargaining power would "definitely be affected" if the acquisition went ahead, as they would have fewer alternative platforms to work for.