Taiwan’s Fair Trade Commission (FTC) has blocked Uber Technologies’ $950 million acquisition of Delivery Hero’s Foodpanda business due to anti-competitive concerns. The merger, which was initially announced in May 2023, would have given the combined company over 90% of Taiwan’s food delivery market share.
The FTC cited concerns that the merger would eliminate Foodpanda as a competitor to Uber Eats, reducing pressure on the combined entity to keep prices low for consumers and commissions reasonable for restaurant partners. Without competition, Uber may raise prices and reduce choice for consumers, undermining the competitive landscape of Taiwan’s food delivery sector.
Uber and Delivery Hero have stated that they might appeal the decision or consider terminating the acquisition. The FTC noted that corrective measures would not be sufficient to address these concerns.
This decision highlights ongoing scrutiny of mergers in the tech and delivery sectors, as regulators assess their long-term impact on competition and consumers.
Source: https://www.benzinga.com/markets/equities/24/12/42678877/ubers-foodpanda-acquisition-blocked-in-taiwan-due-to-competition-concerns