After an eight-month investigation into Grab’s acquisition of Uber in the Vietnamese market, the Vietnam Competition Authority (VCA) has concluded that the deal violated the economic concentration rules of the 2014 Competition Law.

A combination file photo of two people using Grab and Uber ride-hailing services. Grab is found to have violated the Competition Law of Vietnam for its acquisition of Uber Southeast Asia

Nguyen Sinh Nhat Tan, head of the authority, said that he signed the announcement of the investigation’s conclusion on November 30. Accordingly, the deal was judged to have violated the rule on prohibited mergers and the rule of informing authorities of the merger.

The authority has sent the investigation results to the National Competition Council, Tan added.

According to the VCA’s initial investigation results, announced in May, the combined market share of Grab and Uber in Vietnam was over 50%, instead of less than 30% as claimed by Grab.

Meanwhile, the law prohibits cases of economic concentration if the combined market share of the participating enterprises in the relevant market is more than 50%, except in cases where the enterprise after the merger still falls within the category of small- and medium-sized enterprises, as stipulated by the law.

The VCA on May 18 launched an investigation into Grab’s acquisition of Uber’s Southeast Asia business including in Vietnam. The value of the deal was not disclosed, but as part of the deal, Uber now holds a 27.5% stake in the merged company.

In late September, the Singaporean Competition and Consumer Commission fined Grab and Uber nearly US$9.5 million over the deal.

SGT