Taiwan's Fair Trade Commission (FTC) has rejected Uber Technologies Inc.'s proposed $950 million acquisition of Delivery Hero's Foodpanda operations in Taiwan, citing anti-competition concerns. The decision was announced on Wednesday in a news conference by the FTC.

Uber Eats, the subsidiary of Uber Technologies and Foodpanda, had announced the merger deal, which was considered one of the largest international merger deals in Taiwan in May 2024.

The FTC highlighted that the merger between Uber Eats and Foodpanda, the two leading food delivery platforms in Taiwan, would have significantly reduced competition in the market. FTC Vice Chairman Chen Chih-min stated, "In the food delivery platform market, Uber Eats' main competitive pressure comes from Foodpanda. The merger would eliminate this competitive pressure," according to a Reuters report. If the deal was approved and materialised, the combined entity would have 90% of the food delivery market in the country.

According to the FTC, the combined entity would have controlled over 90% of the market, potentially creating a monopoly. The commission warned that reduced competition could lead to higher costs for consumers and increased commission fees for restaurant operators.

"Uber Eats [would be] less constrained by competition, giving it more incentive to raise prices for consumers and even increase commissions for restaurant operators," added Chen, according to the reports.

The acquisition involved Uber purchasing $300 million worth of Delivery Hero shares and was intended to close by mid-2025, pending regulatory approvals. Uber projected that the merger would contribute at least $150 million annually to its adjusted core profit within a year of completion.

Delivery Hero expressed disappointment with the FTC's decision, stating that Uber may consider appealing the ruling or terminating the transaction altogether.

The National Delivery Industrial Union welcomed the FTC's decision, arguing that the merger would have negatively impacted various stakeholders. Union spokesman Su Po-hao stated, "This would have been a lose-lose situation for the industry and consumers," citing concerns over reduced worker benefits, increased fees for customers, and higher commissions for merchants, according to a Taipei Times report.

Earlier this year, the country's Financial Supervisory Commission also blocked another high-profile takeover attempt in the finance sector, making this the second major decision to disallow a merger to uphold fair competition.