PRESS STATEMENT
On the transaction between Grab Philippines and Move It
18 October 2022

 

Based on an initial assessment by the Philippine Competition Commission (PCC), Grab Philippines’ acquisition of Move It likely did not breach the thresholds for compulsory notification. Hence, the parties need not wait for approval from the PCC to consummate the transaction. 

Publicly available information suggests that the transaction was entered into by the parties when the P50-billion notification thresholds under Republic Act No. 11494 or the Bayanihan to Heal as One Act was in effect. Likewise, the publicly announced size of transaction seems to not have breached the thresholds under the Bayanihan Law. 

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. 

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.  

To note, this new acquisition by Grab Philippines will not affect the company’s existing legal commitments to the PCC relating to its takeover of Uber. 

(Background: See Grab’s voluntary commitments to PCC here and remaining refund release order here.) 

The PCC earlier expressed its support in amending the Land Transportation and Traffic Code to allow two-wheeled vehicles as a mode of public transportation. Notwithstanding any comprehensive competition review, the Commission considers the availability of motorcycle taxis and future expansion for the entry of more players as an indicator of an emerging market offering additional public transport options for commuters. 

For concerns relating to passenger safety, accreditation, and eventual franchising of motorcycle taxis, the PCC defers to the Department of Transportation (DOTr), the Land Transportation Office (LTO), and the Land Transportation Franchising and Regulatory Board (LTFRB).

Johannes R. Bernabe
OIC Chairperson
Philippine Competition Commission 

### 

Link: https://www.phcc.gov.ph/press-statements/pcc-grab-moveit/