Grab acquisition of Uber violates competition law
The Ministry of Industry and Trade has announced the conclusion of the investigation over Grab's acquisition of Uber in Vietnam on December 12.
The case has been transferred to the Vietnam Competition Council. A new council will be set up to deal with the case. In 30 days, the council must announce final decisions which include returning the case for more investigation, suspending the investigation and starting a trial to deal with the case.
On March 26, Grab announced its acquisition of Uber in Southeast Asia. Grab Taxi said its market share in Vietnam would still be less than 30% after the acquisition so they did not have to notify the authority before completing the acquisition.
However, according to the Vietnam Competition Authority, they had worked with Grab Taxi on the next day and Grab failed to provide concrete evidence to back up their claims. They asked Grab to provide more evidence and carefully assess their market share after the acquisition.
According to the Law on Competition, if a company gains 30-50% of the market share after an acquisition or merger and didn't inform the authority, they will be fined 10% of the revenue of the previous year.
If the market share after the acquisition exceeded 50%, it could be banned.
Grab acquisition of Uber violates competition law in Vietnam
The case has been transferred to the Vietnam Competition Council. A new council will be set up to deal with the case. In 30 days, the council must announce final decisions which include returning the case for more investigation, suspending the investigation and starting a trial to deal with the case.
On March 26, Grab announced its acquisition of Uber in Southeast Asia. Grab Taxi said its market share in Vietnam would still be less than 30% after the acquisition so they did not have to notify the authority before completing the acquisition.
However, according to the Vietnam Competition Authority, they had worked with Grab Taxi on the next day and Grab failed to provide concrete evidence to back up their claims. They asked Grab to provide more evidence and carefully assess their market share after the acquisition.
According to the Law on Competition, if a company gains 30-50% of the market share after an acquisition or merger and didn't inform the authority, they will be fined 10% of the revenue of the previous year.
If the market share after the acquisition exceeded 50%, it could be banned.
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