Taiwan’s Fair Trade Commission (FTC) has reportedly blocked Uber Technologies, Inc. (NYSE:UBER) $950 million acquisition of Delivery Hero’s Foodpanda business due to anti-competitive concerns.

The merger, which was initially announced in May 2023, would have significantly increased Uber Eats’ dominance in Taiwan’s food delivery market, giving the combined company over 90% of the market share, Reuters reports.

The FTC cited concerns that the merger would eliminate Foodpanda as Uber Eats’ main competitor, reducing market pressure on the combined entity.

The commission argued that without this competition, Uber would have less incentive to keep prices low for consumers or commissions reasonable for restaurant partners.

With a huge market share, the merger could have led to higher prices and less choice for consumers, undermining the competitive landscape of Taiwan’s food delivery sector.

The deal was scrutinized by the FTC after Uber filed the application in November 2023. The commission stated that the merger’s negative effects would outweigh any economic benefits.

Also Read: Elon Musk Calls Jeff Bezos’ Ex-Wife MacKenzie Scott’s $19 Billion Charitable Donations ‘Concerning’

The FTC also noted that corrective measures would not be sufficient to address these concerns.

In response, Uber and Delivery Hero said they might appeal the decision or consider terminating the acquisition.

Uber was optimistic about the deal, as it had hoped the merger would help boost its delivery business by contributing $150 million annually to its adjusted core profit.

While online food delivery platforms in Taiwan account for a small fraction of the broader food delivery market, Foodpanda’s operations had reached breakeven in adjusted core earnings by March 2024.

The proposed merger was expected to be finalized in the first half of 2025, but now faces significant regulatory hurdles in Taiwan.

This decision highlights ongoing scrutiny of mergers in the tech and delivery sectors, as regulators assess their long-term impact on competition and consumers.

Price Action: UBER shares 0.26% to $61.71 on Tuesday, while shares fell by 0.07% after hours.

Read Next:

• Will Amazon Dethrone Walmart This Holiday Season? Here Is What You Should Know