Page 36 - 2024 ANNUAL REPORT FAIR TRADE COMMISSION
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Fair Trade Commission Annual Report 2024
After consolidating the aforesaid information, the FTC concluded that the merger
UberEats mainly came from foodpanda, it would disappear after the merger. The pressure from other competitors would be limited. After the merger, UberEats would not be constrained by competitors and would have the incentive to raise service fees charged to consumers competitors to enter the market in a timely manner and bring competitive pressure to bear on UberEats. Meanwhile, being individual consumers or small and medium dining businesses, ordering delivered food directly from restaurants or adopting other transaction channels to cope with the market power of UberEats. In other words, there would be no countervailing power after the merger.
After assessing the level of impact after the merger, the FTC concluded that the disadvantages from the competition restraints brought about by the merger would outweigh competition. Therefore, the FTC decided to prohibit the merger at the 1732nd Commissioners’ Meeting on Dec. 25, 2024 and issued the merger prohibition decision on Jan. 10, 2025 to protect the interests of consumers and restaurants.
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