South Korean restaurant owners expressed concern on Monday, January 6, over food delivery giant Delivery Hero’s proposed US$4 billion acquisition of its local rival, claiming the move could undermine competition and lead to higher fees.
Delivery Hero, the second-largest food delivery app operator in South Korea, announced last month that it agreed to buy larger rival Woowa Brothers backed by Goldman Sachs in a deal subject to antitrust approval.
The combination of the two giants would create an entity with a combined market share of nearly 99% in food delivery apps, according to data from mobile big data platform IGAWorks.
According to the New York Times, restaurant owners, already struggling with the slowing economy, raised concerns that the dominant player would raise commissions that it charges restaurant owners for taking orders via their apps.
“The biggest problem is that the companies can move the market to whatever direction they want to,” said Kim Kyung-moo, who runs a franchise restaurant, at a news conference at the parliament.
Full Content: New York Times
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