Vietnam are investigating the indication of monopoly on Uber acquisition by Grab

News24xx.com - Vietnam's Ministry of Commerce said they are considering to conducts a formal investigation towards Uber acquisition in Southeast Asia by Grab. After preliminary investigations, indicate that this acquisition violates the competition law.

"Initial investigation results show that the economic concentrations between Grab and Uber in the Vietnamese market have a market share of more than 50%" Vietnam's Trade Ministry said on its website.

After working with companies, associations and relevant government authorities, it was concluded that this agreement shows signs of violation in economic concentration. Vietnam's Ministry of Commerce does not say when they will decide whether to conduct a formal investigation or not.

Investigation conducts by Vietnamese government already done by Indonesia, Singapore, Malaysia, and Philippines. These countries are concerned about the size of Grab's market share after the acquisition will hurt the domestic bussiness.

In addressing Uber's acquisition by Grab, Philippines even asked Go-Jek to expand their bussiness in Philippines. Go-jek's presence is expected to eliminate Grab's dominance and create healthy competition.

News24xx.com/fik/red