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MyCC to investigate possible monopoly in Grab’s potential acquisition of foodpanda

MyCC to investigate possible monopoly in Grab’s potential acquisition of foodpanda

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Following news of the potential sale of foodpanda to Grab, the Malaysian Competition Commission (MyCC) has reportedly been tasked to investigate the possibility of a monopoly. According to the New Straits Times, the potential acquisition has raised concerns that Grab could create a monopoly in the food delivery industry without competitors in the market.

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In a press release on its 12th Special Committee on Competition Meeting, MyCC stated that it is working on its “grand plan to introduce the merger control regime”, in light of the proposed acquisition. “The introduction of the merger control regime will enable MyCC to address the complexities emerging from such merger that will have implications on market dynamics and competition,” it added.

A+M has reached out to MyCC for more information.

The news of the sale emerged in September this year, and when reached out by A+M, the companies said that the deal was still under negotiations. Nonetheless it was reported that tech platform Grab could pay the equivalent of as much as a billion euros for the unit. "Delivery Hero confirms negotiations with several parties regarding a potential sale of its foodpanda business in selected Southeast Asia markets," it said. "Any discussions or plans are in their preliminary stages."

According to German business magazine Wirtschaftswoche, these markets include Singapore, Cambodia, Laos, Malaysia, Myanmar, the Philippines and Thailand.

Separately,foodpanda’s former CEO also came under media attention as the news of the sale was leaked on social media following a spat in his private life. Foodpanda has since changed leadership

Meanwhile, in July this year, Grab also come under similar scrutiny in Singapore, with the Competition and Consumer Commission of Singapore (CCCS) reviewing its proposed acquisition of private taxi operator, Trans-Cab. The CCCS said that it also received concerns about the effect of Grab’s ownership of the Trans-cab fleet on Trans-cab drivers’ usage of rival ride-hail platforms.

"Third-party feedback received by CCCS suggests concerns on the effect of Grab’s ownership of the Trans-cab fleet on Trans-cab drivers’ usage of rival ride-hail platforms, which may raise barriers to expansion and entry for Grab’s rival ride-hail platforms, given the importance of scale in the ride-hail platform industry," said CCCS in a statement. "Accordingly, CCCS needs to review the competition effects of the Proposed Acquisition in greater detail," it said.

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Related articles:
SG's competition watchdog is looking into Grab's acquisition of Trans-Cab
HK competition watchdog ends probe into proposed plan between Cathay Pacific and Malaysia Airlines
Competition watchdog reviews public opinion regarding possible breaches by foodpanda HK and Deliveroo HK

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