MANILA (Reuters) - The Philippines’ anti-trust agency on Tuesday started a review of Uber Technologies Inc’s proposed sale of its money-losing Southeast Asian business to ride-hailing rival Grab, saying the deal could hurt competition.
Uber and Grab announced the deal a week ago, marking the U.S. company’s second retreat from an Asian market. It earlier sold off its operations in China.
The Philippine review follows a similar move by Singapore’s regulator which began its probe last week. Malaysia has also said it will look into whether the sale hinders competition.
“There are reasonable grounds that the said acquisition may likely substantially lessen, prevent, or restrict competition,” the Philippine Competition Commission said in a statement.
The Commission also said, based on its initial assessment, the riding public and partner drivers may be adversely affected by the consequent impact on competition.
A Grab spokeswoman said the company would comment on the matter after receiving official communication from the agency. An Uber spokesman said any comments would be issued by Grab.
Uber’s Philippine operations will cease on April 8.
The Philippine transportation agency caps the number of ride-sharing vehicles at 65,000 across all brands and reviews the figure every three months.
Reporting by Neil Jerome Morales; Editing by Muralikumar Anantharaman and Christopher Cushing