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The KFTC has approved the proposed joint venture between Uber Technologies Inc. (hereinafter referred to as “Uber\") and T Map Mobility Co. Ltd (hereinafter referred to as “T Map Mobility”) on January 28, 2021.

On October 22, 2020, Uber filed a merger notification with the KFTC to set up a taxi-hailing joint venture* with T Map Mobility. According to the proposed merger, Uber and T Map Mobility will hold a stake of 51% and 49% in the JV, respectively.

* Online platform service that connects vehicle drivers with platform users who need a ride via a mobile application, etc. (i.e. Kakao T, T Map Taxi, etc.)

Uber is a global platform provider of ride-sharing services, operating ride-hailing services such as \"Uber Taxi\"* and \"Uber Black\"** in Korea. T Map Mobility was established by SK Telecom as it spun off its existing mobility business unit*** on December 30, 2020.

* Uber\'s registered taxi-hailing service
** Uber\'s premium taxi-hailing service that matches passengers with drivers driving luxury vehicles for a higher price.
*** T Map Taxi, T Map for Car, T Map Parking, T Map Public Transportation, T Map, etc.

The JV plans to operate its business by taking over Uber and T Map Mobility\'s ride- haling services. In addition, T Map Mobility will provide the JV with its GPS service spun off from SK Telecom.

The KFTC reviewed whether the proposed merger would restrict market competition, focusing on the domestic ride-hailing service market where the two companies\' businesses overlap. After determining that there would be no anti-competitive concerns, the KFTC notified Uber of its decision on January 28, 2021.

The KFTC concluded that the JV would not raise anti-competitive concerns, given that the domestic ride-hailing service market would not face much change in market concentration, and that the JV would actually increase competitive pressure on the market\'s leading business Kakao T.

The KFTC also reviewed possible vertical restraints resulting from the JV using T Map Mobility\'s map service, and concluded that the proposed merger is less likely to foreclose map service providers and ride-hailing service providers from the map service market.

The KFTC\'s decision is meaningful in that it has laid a foundation for promoting innovation competition in the new industries such as ride-hailing services.

The KFTC will continue to strictly review and take action against anti-competitive mergers that may substantially restrict competition in relevant markets. At the same time, it will approve mergers that promote innovation without raising any competition concerns, and thereby create a foundation to enhance competitiveness of companies and reinvigorate relevant markets.

*The Korean text of the documents is confirmed to be authentic and English version is only for reference

[M&A Division, February 9, 2021]