Egypt: Watchdog sees issues with Uber/Careem deal

The Egyptian Competition Authority is working on a full-fledged report on the potential impact of the region-wide merger deal between Uber and Careem on the passenger market in Egypt, and is requesting data from the two companies regarding the deal.

Uber seeks to either acquire more than half of Careem after merging or fully purchase it in order to overcome the costly competition between the two companies.

High-level government sources told Al-Masry Al-Youm newspaper on Monday, August 13, that the Competition Protection Authority requested both companies provide all data and documents related to the ongoing negotiations on the merger to study its possible effects on the Egyptian market and the freedom of competition in the passenger transport sector.

The authority will refer the file to the public prosecutor because of the vagueness surrounding the potential merger deal.

The acquisition of one of the two companies by the other would create a monopoly position in the market, which would limit the freedom of competition in this sector and would affect consumers by limiting promotions and lead price increases, the sources said.

Full Content: Egypt Independent