◀ Anchor ▶
The Fair Trade Commission has practically put a brake on the merger and acquisition of Yogiyo and Yogiyo, the first and second largest delivery app provider in Korea.
The Fair Trade Commission determined that if competition disappeared due to the union between the two companies, it would damage both consumers and restaurant owners.
This is reporter Sejin Kim.
◀ Report ▶
The Fair Trade Commission has approved a business combination in which Delivery Hero, a German delivery app operator, acquires 88% of the elegant brothers who run the nation of delivery.
Instead, it fulfilled the condition that all Yogiyo shares owned by Delivery Hero should be sold to a third party.
The merger of Yogiyo and Baeui Minjok, the No. 1 and No. 2 delivery app providers in Korea, will be put to a standstill.
As of last year, the FTC said that Bae Min and Yogiyo’s market share reached 99.2%, and latecomers such as Coupang Itz and Naver are increasing their market share, but considering that they are less than 5%, their business combination ultimately leads to Judged to limit the competition.
The FTC also said consumer benefits are likely to decline and restaurant fees are likely to increase.
As a result of analyzing the cases of discount coupons provided by these companies, it is found that discount coupons are small in regions where Baemin and Yogiyo share a high market share, indicating that the merger may reduce consumer benefits.
As for restaurant owners, the FTC explained that as sales through delivery apps are significant, most consumers are using Baemin or Yogiyo, so even if the fees increase, they have no choice but to continue using these apps.
The FTC said the decision is meaningful to promote the synergy effect by allowing the combination of delivery heroes and graceful brothers, while maintaining the competitive relationship between Bae Min and Yogiyo, thereby promoting consumer welfare.
If Delivery Hero accepts the FTC’s approval of a conditional merger, it must sell Yogiyo within six months, and the sale deadline can be extended once, another six months.
This is Sejin Kim of MBC News.
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