RIDE-HAILING services providers Grab and Uber will need to secure the approval of the Philippine Competition Commission (PCC) before their operations in the Philippines could be integrated.
Arsenio Balisacan, chairman of the commission, said in a statement issued late Monday afternoon, March 26, that if the planned merger meets the new threshold for compulsory notification, Uber and Grab are required to notify the commission within 30 days after the signing of a definitive agreement.
As of March 26, "no notification has been filed at the PCC by Grab or Uber," Balisacan said.
Under the Philippine Competition Act, the commission has the power to review mergers and acquisitions that have a direct effect on trade, industry or commerce in the Philippines. Only upon the commission's approval can a merger be implemented or consummated.
The commission recently raised the threshold for required notification, set at P1 billion when the law was enacted, to P5 billion for the Size of Person/Party and P2 billion for the Size of Transaction.
The Size of Person/Party refers to the value of assets or revenues of the ultimate parent entity of at least one of the parties, while Size of Transaction refers to the value of the assets or revenues of the acquired entity.
Grab announced Monday that it acquired Uber's operations and assets in Cambodia, Indonesia, Malaysia, Myanmar, the Philippines, Singapore, Thailand and Vietnam.
Read: Uber sells to rival Grab
On the same day, Uber issued an advisory to inform users that it would be “transitioning its services over to the Grab platform” by April 8, 2018.
“All requests after that date should be made from the Grab app,” the advisory states. Uber is still available in over 80 countries, it added.
The Philippine Competition Act, or Republic Act 10667, was passed in 2015. It aims to improve consumer protection and ensure that markets remain open and free. (MVI/SunStar Philippines)