The Federal Antimonopoly Service (FAS) denied Yandex an application for the purchase of the Lucky taxi group, estimating their combined market share at 70%. Such a merger would narrow the choice of taxi aggregators for drivers and passengers, officials decided.
The purchase by Yandex of the Wezet taxi group contradicts the law on the protection of competition, FAS said and refused the Internet holding to acquire this group.
On May 15, 2020, the FAS filed a request for approval of Yandex’s purchase of the Vezet taxi aggregator, including its trademarks Fasten, Leader, RedTaxi, etc. This is the fourth petition; the previous three companies filed during the year and revoked, changing the structure of the transaction. As a result of the analysis of the taxi aggregator market, the FAS concluded that in the event of a transaction, the aggregators of Yandex.Taxi and the Vezet group will have a combined share of 70% in Russia, over 80% in 19 of its constituent entities and over 50% in 32 constituent entities.
That is, as a result of the transaction, Yandex.Taxi and the Vezet group will strengthen their dominant position both throughout the country and within the boundaries of more than half of the regions, the service concluded.
“Having analyzed all the materials submitted by the parties to the transaction, taking into account the analysis of the taxi aggregator market, the FAS Russia came to the conclusion that the transaction leads to increased market concentration, to a narrower choice of taxi drivers and passengers. Accordingly, the consequences of the transaction could have a negative impact on competition in the market for taxi aggregators, ”concluded Anatoly Golomolzin, Deputy Head of the FAS.