Singapore: Announced CCCS investigation into proposed acquisition of Delivery Hero's operations by Grab Holdings

On 10 January 2024, the Competition and Consumer Commission of Singapore (CCCS) announced an investigation into the potential acquisition of Delivery Hero SE's business Foodpanda GmbH (Germany) by Grab Holdings Inc. The investigation was initiated to determine if a potential transaction would violate section 54 of the Competition Act 2004. The CCCS noted that the transaction could significantly reduce competition in the online food ordering and delivery (OFOD) market in Singapore. The OFOD services depend on an interconnected network involving delivery riders, food and beverage businesses, and consumers, creating indirect network effects that benefit the leading platform. A well-established platform with high usage attracts more riders, businesses, and consumers, thereby reinforcing its market position over less established competitors offering similar services.