Ministry investigates Uber and Grab acquisition

The Ministry of Industry and Trade announced that they are investigating Grab's buying of Uber's stakes in Vietnam and are working with both companies.

Uber's Southeast Asia operations have been acquired by Grab

Starting from 11.59 pm on April 8, Uber officially stopped its operations and closed all offices in Vietnam. The Vietnam Competition Authority under the Ministry of Industry and Trade decided to start a 30-day investigation in potential monopoly in accordance with the Law on Competition.

The Vietnam Competition Authority had asked Grab Taxi to provide necessary documents related to the acquisition. On April 5, Grab Taxi replied that after the acquisition, its market share in Vietnam would still be less than 30%. That's why Uber and Grab Taxi did not have to notify the authority before completing the acquisition.

However, according to the Vietnam Competition Authority, they had worked with Grab Taxi on the next day and Grab failed to provide concrete evidence to back up their claims. They asked Grab to provide more evidence and carefully assess their market share after the acquisition.

According to the Law on Competition, if a company gains 30-50% of the market share after an acquisition or merger and didn't inform the authority, they will be fined 10% of the revenue of the previous year.

If the market share gained after the acquisition is over 50%, it will be banned.

The HCM City Taxation Department is also seeking measures to get the tax arrears of VND53.3 billion (USD2.33 million) that Uber has delayed paying.

While Uber refused to pay the tax arrears, a representative from Grab said Grab did not buy Uber’s liabilities in Vietnam, so it will not be responsible for the tax arrears.