(Reuters) -Taiwan has blocked Uber Technologies’ (NYSE:) purchase of Delivery Hero’s $950 million Foodpanda business on the island over concerns it would be anti-competitive, the Fair Trade Commission (FTC) said on Wednesday .
Uber and Foodpanda did not immediately respond to requests for comment outside regular business hours.
Delivery Hero said in a statement that Uber could appeal the commission’s decision or terminate the acquisition.
In a media briefing, the commission said the negative impact of the merger would outweigh the overall economic benefits, and that corrective measures would not address competitive concerns.
“In the food delivery platform market, the main competitive pressure from UberEats comes from Foodpanda. The merger would remove this competitive pressure,” said Chen Chih-min, vice chairman of Taiwan’s FTC.
“After the merger, UberEats would be less constrained by competition, giving it more incentives to raise prices for consumers and even increase commissions for restaurant operators.”
Chen added that after the merger, the combined market share of both companies in Taiwan would exceed 90%.
Uber and Delivery Hero announced the Taiwan deal in May, which included a separate agreement for Uber to buy $300 million worth of newly issued shares of the German food delivery company.
The US company expected the acquisition to add at least $150 million a year to adjusted core profit from its delivery business within a year of closing the deal, which was considered likely in the first half of 2025.
Online food delivery platforms represent a small portion of Taiwan’s competitive food delivery market. Foodpanda’s operations on the island broke even in terms of adjusted core revenues for the twelve months ended March 31, 2024, the companies said.
