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Uber’s acquisition of Careem contrary to law: Egyptian Competition Authority
MAGNiTT News 2 years ago - Tue, Sep 4, 2018, 8:25 AM
By Daily News Egypt
SOURCE: Daily News Egypt - Uber’s acquisition of Careem contrary to law: Egyptian Competition Authority
The Egyptian Competition Authority issued an official notification for Uber and Careem due to their plans to sign contracts for the acquisition of Uber for Careem’s shares, stating that these contracts appear as acquisition of shares or transfer of ownership, but in fact it can be an agreement between two competing groups which is considered a violation for the provisions of Article 6 paragraph 1 and 2 of the law, explaining that Uber and Careem should first notify the Egyptian Competition Authority, before signing these contracts to obtain prior consent.
The Egyptian Competition Authority stated that according to the evidence available to the authority and from the complaints that Careem provided against Uber, such practices would negatively impact the competition and the consumer.
The Egyptian Competition Authority added that these practices are also considered a violation of the law.
The Egyptian Competition Authority explained that the authority addressed both entities to understand the validity of the information, and the responses of both companies denied the completion of any such contracts, although the responses do not deny negotiating this issue.
This came after the media reported the existence of negotiations between Uber and Careem regarding plans to sign contracts for Uber to purchase Careem’s shares, which means Uber’s acquisition of Careem.