A consumer advocacy group urged the Land Transportation Franchising and Regulatory Board (LTFRB) to “stop meddling” with the ongoing review over Grab’s takeover deal of rival Uber.
LTFRB should allow the Philippine Competition Commission (PCC) to complete its review of the deal, said Laban Konsyumer Inc. (LKI) said in a statement.
This developed as PCC ordered Uber to continue operations until the antitrust body finishes its review of the transaction.
Prior to this order, Uber was supposed to end its services on April 8.
PCC called for both Grab and Uber to continue operating independently for the time being, requiring both players to keep the same business conditions, such as driver incentives as before the deal was made.
However, after the announcement was made over the weekend, LTFRB Board Member Aileen Lizada said Uber should have just shut down its services as scheduled, disobeying the order from PCC.
LTFRB’s statements such as this could “undermine” the review process, according to LKI president and former trade undersecretary Victor Dimagiba.
“The LTFRB should stop meddling in the review of the Uber and Grab agreement by PCC,” he said.
The Philippine Competition Act gives PCC the primary power to review and decide on the deal, he said. Therefore, LTFRB should just let PCC finish its job.
“Any public statement supporting the shutdown of Uber by LTFRB could undermine the PCC review processes,” he added, noting that there should not be any “turf war.”
PCC called for independent and separate operations in order to preserve the integrity of the review.
According to Commissioner Stella Alabastro Quimbo in last week’s public hearing, not imposing independence means the players would “in effect have the ability to exhibit behaviour that can duly influence assessment by PCC.”
On the other hand, Grab external legal counsel Arlene Maneja said in the same hearing that PCC’s concerns are “not really real in this case.”
She said the acquisition involves driver contracts as well as other data that drivers consented to give.
The deal does not include the integration of both Grab and Uber systems, she said, therefore, they do not have access to relevant information such as Uber’s pricing mechanisms, incentives, sales, among other data.