«Uber is the perfect partner,» with cornershop CEO and founder Oskar Hjertonsson referred to the agreement announced on October 11th with the renowned transportation app.
Uber will acquire the majority stake in the supermarket shopping platform, pharmacies or other stores to receive the product at home within an hour. It is worth mentioning that this alliance comes just after the failed agreement between Walmart and Cornershop in June when Mexico’s Federal Economic Competition Commission (Cofece) stopped this move.
But now, following efforts to bring the agreement to close in early 2020, a process of regulatory approvals began.
According to Emol, four days after the announcement, the parties entered the notice to the National Economic Prosecutor’s Office (FNE) of this purchase process, which must be approved by the entity that promotes and defends free competition in all markets or productive sectors of the Chilean economy.
After two failed notification attempts, which the FNE deemed «incomplete, the third was overdue, and a new document was submitted by the parties on 29 November.
On the face of this, the FNE noted that «as indicated by the parties, the Notification would account for a concentration of those referred to in Article 47(b) of DL 211 as it entails the acquisition of rights by Uber that allows it to should have a decisive influence on cornershop’s administration.»
The auditing authorities noted that, this time, «it is possible to conclude that the notification would be complete under the reported terms».
«Because of the above, and without prejudice to other background and information that this prosecution may require during the investigation procedure, it is appropriate to initiate the investigation,» the FNE concluded according to the electronic means.
The inquiry will, inter alia, ascertain whether that transaction would affect the market, if it means too much advantage over competition, which could be reflected in an impact on consumers.