Richard Hsu’s Post

Taiwan's Fair Trade Commission has blocked Uber's $950 million acquisition of Foodpanda's local delivery business, citing concerns about reduced competition. The decision highlights fears of higher prices for consumers and restaurants and challenges for new competitors entering the market. Uber expressed disappointment but emphasized its commitment to Taiwan, while Delivery Hero, Foodpanda’s parent company, noted that Uber could appeal or terminate the deal. This case underscores the critical role of antitrust laws in fostering fair competition, protecting consumers, and promoting innovation. It also raises important questions about balancing regulatory oversight with the growth of tech companies a challenge that resonates across data privacy, cybersecurity, and AI. As technology reshapes industries, ensuring ethical and competitive practices remains vital for building a sustainable digital economy. https://bit.ly/4h8M5m6

📢 European Commission Investigates Anticompetitive Practices in Online Food Delivery Sector The European Commission has launched a formal investigation into Delivery Hero and Glovo to assess potential breaches of EU competition rules. Key concerns include: 🎯Market Allocation: Possible division of geographic markets. 🎯Sensitive Information Sharing: Exchange of commercial strategies, prices, and etc. 🎯No-Poach Agreements: The Commission is concerned that Delivery Hero and Glovo may have agreed not to poach each other’s employees. 📢This investigation is significant as it marks the first formal inquiry by the Commission into no-poach agreements.   #Antitrust #CompetitionLaw #OnlineFoodDelivery #EUCommission #NoPoachAgreements #RekabetHukuku

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In a major move shaking up the food delivery landscape, Taiwan has halted Uber's $950 million acquisition of Delivery Hero's Foodpanda business in the region. The decision by Taiwan's Fair Trade Commission highlights significant concerns over competition, underscoring the island's commitment to preserving a dynamic and competitive market environment. The acquisition, which was announced in May, was poised to create a dominant entity in Taiwan's food delivery sector, raising alarms about potential monopolistic practices. The crux of the issue revolves around the potential market share the combined operations of Uber and Foodpanda could command, potentially stifling competition and hindering innovation within the industry. According to data from the IndexBox platform, Taiwan's food delivery market has experienced substantial growth in recent years. This expansion makes it a lucrative arena, drawing attention to the critical balance between fostering business development and ensuring fair competition. The authorities' decision highlights the importance of maintaining diverse market players to continue driving innovation and offering consumers varied choices. While the decision is a setback for Uber's expansion plans in Taiwan, it also serves as a reminder of the regulatory hurdles tech giants may face in growing their operations. Mergers and acquisitions, especially in rapidly growing sectors like food delivery, will continue to be closely scrutinized by regulatory bodies to safeguard consumer interests. As this situation unfolds, stakeholders will undoubtedly be watching closely, with significant implications for other global and regional companies eyeing similar expansions. The outcome in Taiwan could set precedents for how such transactions are viewed by competition authorities worldwide, emphasizing the need for strategic planning and compliance with local regulations. #FoodDelivery #CompetitionLaw #MergersAndAcquisitions https://lnkd.in/dtYwtyGF

EU To Investigate Delivery Hero, Glovo Over Food Delivery Cartel Concerns: An anonymous reader quotes a report from TechCrunch: The European Commission announced a formal investigation into Berlin-based food delivery giant Delivery Hero and its Spanish subsidiary, Glovo, on Tuesday, citing cartel concerns. The Commission will launch an in-depth probe into agreements between the online delivery firms to establish whether any anticompetitive activity has taken place. "The Commission is concerned that, before the takeover, Delivery Hero and Glovo may have allocated geographic markets and shared commercially sensitive information (e.g., on commercial strategies, prices, capacity, costs, product characteristics)," the Commission wrote in a press release. "The Commission is also concerned that the companies may have agreed not to poach each other's employees. These practices could have been facilitated by Delivery Hero's minority share in Glovo." The move follows unannounced raids conducted on the two companies' local offices in July 2022 and November 2023. From July 2018, Delivery Hero held a minority share in Glovo -- going on to acquire sole control in July 2022, per the Commission, which noted that this is the first investigation it has undertaken into anti-competitive agreements "that may have occurred in the context of a minority shareholding by one operator in a competitor." [...] Earlier this month, the German delivery giant warned investors it could ultimately face an antitrust fine of up to 400 million euros over the EU antitrust issue. Read more of this story at Slashdot.

EU To Investigate Delivery Hero, Glovo Over Food Delivery Cartel Concerns: An anonymous reader quotes a report from TechCrunch: The European Commission announced a formal investigation into Berlin-based food delivery giant Delivery Hero and its Spanish subsidiary, Glovo, on Tuesday, citing cartel concerns. The Commission will launch an in-depth probe into agreements between the online delivery firms to establish whether any anticompetitive activity has taken place. "The Commission is concerned that, before the takeover, Delivery Hero and Glovo may have allocated geographic markets and shared commercially sensitive information (e.g., on commercial strategies, prices, capacity, costs, product characteristics)," the Commission wrote in a press release. "The Commission is also concerned that the companies may have agreed not to poach each other's employees. These practices could have been facilitated by Delivery Hero's minority share in Glovo." The move follows unannounced raids conducted on the two companies' local offices in July 2022 and November 2023. From July 2018, Delivery Hero held a minority share in Glovo -- going on to acquire sole control in July 2022, per the Commission, which noted that this is the first investigation it has undertaken into anti-competitive agreements "that may have occurred in the context of a minority shareholding by one operator in a competitor." [...] Earlier this month, the German delivery giant warned investors it could ultimately face an antitrust fine of up to 400 million euros over the EU antitrust issue. Read more of this story at Slashdot.

EU To Investigate Delivery Hero, Glovo Over Food Delivery Cartel Concerns: An anonymous reader quotes a report from TechCrunch: The European Commission announced a formal investigation into Berlin-based food delivery giant Delivery Hero and its Spanish subsidiary, Glovo, on Tuesday, citing cartel concerns. The Commission will launch an in-depth probe into agreements between the online delivery firms to establish whether any anticompetitive activity has taken place. "The Commission is concerned that, before the takeover, Delivery Hero and Glovo may have allocated geographic markets and shared commercially sensitive information (e.g., on commercial strategies, prices, capacity, costs, product characteristics)," the Commission wrote in a press release. "The Commission is also concerned that the companies may have agreed not to poach each other's employees. These practices could have been facilitated by Delivery Hero's minority share in Glovo." The move follows unannounced raids conducted on the two companies' local offices in July 2022 and November 2023. From July 2018, Delivery Hero held a minority share in Glovo -- going on to acquire sole control in July 2022, per the Commission, which noted that this is the first investigation it has undertaken into anti-competitive agreements "that may have occurred in the context of a minority shareholding by one operator in a competitor." [...] Earlier this month, the German delivery giant warned investors it could ultimately face an antitrust fine of up to 400 million euros over the EU antitrust issue. Read more of this story at Slashdot.

𝐔𝐧𝐝𝐞𝐫𝐬𝐭𝐚𝐧𝐝𝐢𝐧𝐠 𝐇𝐨𝐰 𝐌𝐢𝐧𝐨𝐫𝐢𝐭𝐲 𝐒𝐡𝐚𝐫𝐞𝐡𝐨𝐥𝐝𝐢𝐧𝐠 𝐂𝐚𝐧 𝐅𝐚𝐜𝐢𝐥𝐢𝐭𝐚𝐭𝐞 𝐀𝐧𝐭𝐢-𝐂𝐨𝐦𝐩𝐞𝐭𝐢𝐭𝐢𝐯𝐞 𝐁𝐞𝐡𝐚𝐯𝐢𝐨𝐮𝐫 In a recent press release, the European Commission announced the opening of a formal antitrust investigation into Delivery Hero and Glovo, two of Europe's largest food delivery companies. The Commission is investigating whether these companies have breached EU competition rules by participating in a cartel in the online ordering and delivery sector across the European Economic Area (EEA). One key aspect of this investigation is the role of minority shareholding in potentially facilitating anti-competitive behaviour. From July 2018 until July 2022, Delivery Hero held a minority share in Glovo before acquiring sole control. During this period, the Commission is concerned that Delivery Hero and Glovo may have allocated geographic markets and shared commercially sensitive information, such as commercial strategies, prices, capacity, and costs. There are also concerns about potential agreements not to poach each other’s employees. So, how can minority shareholding contribute to anti-competitive practices? 1️⃣ 𝐀𝐜𝐜𝐞𝐬𝐬 𝐭𝐨 𝐒𝐞𝐧𝐬𝐢𝐭𝐢𝐯𝐞 𝐈𝐧𝐟𝐨𝐫𝐦𝐚𝐭𝐢𝐨𝐧: A minority shareholder often gains access to strategic and commercially sensitive information about the other company. This access can lead to exchanges of information that reduce competitive pressure between the companies. 2️⃣ 𝐈𝐧𝐟𝐥𝐮𝐞𝐧𝐜𝐞 𝐨𝐧 𝐃𝐞𝐜𝐢𝐬𝐢𝐨𝐧𝐬: Even without controlling interest, a minority shareholder can exert significant influence over the company’s decisions, including those related to market strategies and competitive behaviour. 3️⃣ 𝐅𝐚𝐜𝐢𝐥𝐢𝐭𝐚𝐭𝐢𝐨𝐧 𝐨𝐟 𝐂𝐨𝐨𝐫𝐝𝐢𝐧𝐚𝐭𝐢𝐨𝐧: The presence of a minority shareholder in a competitor can make it easier to coordinate actions and strategies, effectively reducing competition. This is particularly concerning in industries with high market concentration, such as the food delivery sector. 4️⃣ 𝐑𝐞𝐝𝐮𝐜𝐭𝐢𝐨𝐧 𝐢𝐧 𝐂𝐨𝐦𝐩𝐞𝐭𝐢𝐭𝐢𝐯𝐞 𝐑𝐢𝐯𝐚𝐥𝐫𝐲: Agreements or tacit understandings facilitated through minority shareholding can lead to reduced competitive rivalry, market allocation, and non-poaching agreements, all of which are harmful to market health and consumer welfare. The European Commission’s investigation into Delivery Hero and Glovo is the first to explore the anti-competitive implications of minority shareholding in this context. This case underscores the need for vigilance in maintaining fair competition and ensuring that all market participants adhere to competition laws. #competitionlaw #privateequity

The investors in food delivery service Getir have agreed to split up the company. At least that's what »Sky News« (24 June) reports. A resolution to this effect is believed to have been passed at an extraordinary general meeting held at the weekend. The first company will comprise the supply business in Turkey and will be majority-owned by Mubadala, Abu Dhabi's sovereign wealth fund. The business will be headed by Batuhan Gultakan, currently CEO of Getir Turkey.    Nazim Salur, Getir's founder, will not be actively involved in it, but in the second company, comprising Getir's other assets, including the ride-sharing services Getir Drive and BiTaksi. Mubadala is said to have agreed to invest up to 250m US dollars in the expansion of the Turkish delivery business and the orderly wind-down of the UK and European operations as part of the reorganisation efforts. Issue 26/2024 of our weekly news service provides more current and relevant news and information on 10 pages: Including the multi-billion class action lawsuit against Royal Mail, Evri, Coyote Logistics, bpost, Planzer Paket, FOXPOST PLC, HOPPS GROUP, Yodel (Yodel Delivery Network Ltd), FAN Courier etc. Free and non-binding trial subscriptions can be ordered on the website www.cep-news.com CEP News - Market insights for professionals – www.cep-news.com

Uber Eats faces major roadblocks in $9B foodpanda deal! 🚨 🚨 Uber Eats is trying to buy its competitor foodpanda for $9B. 💼 Taiwan’s Ministry of Labor is not happy, saying delivery workers’ rights must be protected first. ⚖️ The deal is stuck while Uber and foodpanda submit documents for review. 🛑 The National Delivery Industrial Union is demanding better pay and rights before the merger goes through. 🏛️ The Fair Trade Commission will decide, but it’s still unclear if this deal will happen in Taiwan. 🚴 Meanwhile, delivery drivers wait for a decision that could change their jobs dramatically. ~~~ ✍️Will the Uber Eats-foodpanda merger harm delivery workers? ♻️ Reshare if this resonates with you. 💌 Subscribe to MarketMaze for more insights. Link in bio. #UberEats #foodpanda #LaborRights #Taiwan #FairTrade