Taiwan’s Fair Trade Commission (FTC) has officially blocked Uber Technologies Inc.’s proposed acquisition of Delivery Hero SE’s Foodpanda business for $950 million, citing significant anti-competitive concerns. The decision, announced on December 25, 2024, stems from fears that the merger would drastically increase market concentration in Taiwan’s food delivery sector, potentially giving the combined entity over 90% of the market share.
The FTC’s analysis indicated that merging Uber Eats and Foodpanda would eliminate Foodpanda as a key competitor, thereby reducing competitive pressure in the market. This lack of competition could lead to higher prices for consumers and increased commission rates for restaurant partners, undermining the overall competitive landscape. The commission emphasized that the disadvantages of the merger outweighed any potential economic benefits it might bring.
Uber had initially announced the acquisition in May 2023, aiming to finalize the deal by mid-2025. The FTC began its review process after Uber submitted the necessary documentation in November 2023, and it extended its investigation following public concerns about market dominance. Despite Uber’s attempts to address these concerns through proposed commitments and conditions, the FTC concluded that such measures would not sufficiently mitigate the risks associated with reduced competition.
This ruling marks a significant regulatory intervention in Taiwan’s fast-growing food delivery market and follows a trend of increased scrutiny on mergers within the tech and delivery sectors globally. It reflects a broader commitment by Taiwanese regulators to maintain competitive markets, particularly in industries where consumer choice is critical.
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