Review of Grab PH’s takeover of Move It still possible
The Philippine Competition Commission (PCC) said on Tuesday it was not ruling out the possibility of investigating on its own the acquisition of motorcycle taxi firm Move It by Grab Philippines, even after it deemed that the size of the transaction did not require the two firms to notify them.
The commission said the acquisition “likely did not breach the thresholds for compulsory notification,” meaning that both parties did not need to wait for approval from them to complete the transaction.
The PCC explained that the transaction was entered into by Grab Philippines and Move It when the P50-billion notification thresholds under Republic Act No. 11494, or the “Bayanihan to Heal as One Act,” was in effect.
“However, the PCC may still launch a motu proprio review of the transaction if it finds reasonable grounds to believe that the deal will result in substantial lessening of competition in the relevant markets,” the PCC added.
“Transactions in digital markets are often characterized by small tangible assets that fail to meet the triggers for mandatory review. Their importance and utility to consumers, however, rank high in the priorities of the commission to merit steadfast monitoring,” the commission said.
The PCC initiates an investigation of its own depending on several criteria, including the commission’s yearly priority sectors, as well as the level of public interest on a particular issue.
Grab Philippines announced the acquisition last Aug. 26, saying that the deal—which was below P1 billion—was made amid the growing demand for motorcycle taxis. INQ