Taiwan FTC Halts Uber’s $950M Foodpanda Buyout Over Antitrust Fears

Uber Technologies’ ambitious plans to acquire Foodpanda’s Taiwan operations for $950 million have hit a roadblock after Taiwan’s Fair Trade Commission (FTC) rejected the deal, citing antitrust concerns. According to Yahoo News, Taiwan’s FTC determined that the merger would significantly reduce competition in the local food delivery market, leading to potential harm for both consumers and businesses.

Taiwan’s FTC expressed concerns that the acquisition would consolidate market power in the hands of Uber’s delivery arm, led by CEO Dara Khosrowshahi, and Foodpanda, effectively dampening competition that currently benefits consumers and restaurants. Per Yahoo News, Taiwan’s FTC warned that reduced competition could result in higher prices, fewer choices for eateries and customers, and create substantial barriers for new players trying to enter the market.

Uber has expressed disappointment over the decision. “We made proposals to address Taiwan’s FTC concerns,” the company stated, adding that despite the setback, it remains committed to investing in Taiwan, which it described as one of its fastest-growing markets for food delivery.

Read more: Taiwan’s Ministry of Labor Opposes Uber Eats-Foodpanda Merger

The proposed deal, announced in May, was part of Uber’s broader strategy to expand its delivery footprint in Asia. Alongside the acquisition, the company had also planned a $300 million investment in Delivery Hero, Foodpanda’s parent company. Uber had projected that the move would generate at least $150 million in annual earnings within the first year of completion, according to Yahoo News.

This decision leaves the future of the acquisition uncertain. Delivery Hero has indicated that Uber could choose to appeal Taiwan’s FTC ruling or terminate the deal altogether. However, the outcome underscores the challenges of navigating antitrust regulations in international markets.

While Uber sought to diversify its operations with one of Taiwan’s largest international acquisitions outside the semiconductor industry, it now faces a major hurdle. For consumers and competitors in Taiwan, the ruling serves as a reminder of the critical role of competition in keeping markets accessible and prices fair.

Source: Yahoo News