TAIPEI: Taiwan has rejected ride-hailing giant Uber`s plan to buy Delivery Hero`s Foodpanda on the island, stating on Wednesday that the deal would significantly harm market competition.

The US ride-hailing giant was aiming to acquire Foodpanda Taiwan by the first half of 2025 for US$950 million, merging the top two players in Taiwan`s food delivery market.

`If Uber acquires Foodpanda, it will be completely unrestrained by competition,` Taiwan`s Fair Trade Commission (FTC) vice chairman Chen Chi-ming told a press conference.

`The disadvantages to market competition from this merger far outweigh its economic benefits, Chen said, adding that the merged companies` market share would exceed 90pc.

`No corrective measures could sufficiently ensure competition would be maintained,` he said.

Uber had described the deal, announced in May, as one of Taiwan`s largest internationaldeals outside the semiconductor industry.

Chen said the FTC conducted an economic analysis to assess the merger`s impact on competition, and received over 600 responses from food delivery platforms and relevant agencies.

Taiwan`s delivery trade union welcomed the FTC`s decision, with spokesperson Su Po-hao saying it secures `greater benefits for the future of the food delivery industry`.

The union had argued that the merger would have created a monopoly and led to widespread losses for delivery riders, vendors and consumers.

The companies have also reached a separate agreement for Uber to buy US$300 million in newly issued ordinary shares of Delivery Hero, according to May`s statement.-AFP