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Jakarta Post

Gojek, Grab merger could spell start of antitrust investigation

  • Eisya A. Eloksari

    The Jakarta Post

PREMIUM
Jakarta   /   Tue, December 8, 2020   /  08:37 am
The Jakarta Post Image
Gojek and Grab drivers check their phones while waiting for customers in Jakarta on April 7. (JP/Wendra Ajistyatama)

Southeast Asian ride-hailing giants Gojek and Grab are reportedly discussing a merger deal, but officials and experts have warned that a consolidation of such dominant companies will cause a market monopoly. A monopoly could result in price dumping, which could prevent new players from seeing a successful transition into the market or result in a single player having control over prices. The Business Competition Supervisory Commission (KPPU) would evaluate any corporate actions based on their effect on market concentration and competition post-merger and acquisition, KPPU commissioner Guntur Saragih said on Thursday. “Every corporate action can affect the market structure, especially mergers and acquisitions in the same horizontal,” he said. “If the Grab-Gojek merger were to happen, the commission would need a notification no later than 30 days after the merger...