Uber must sell part of Dantaxi after regulatory intervention

American ride-sharing giant Uber is compelled to divest a substantial part of its Danish taxi service, Dantaxi, after Danish authorities intervened to prevent anti-competitive practices. The Competition and Consumer Authority announced Monday that the merger between Uber and Dantaxi posed a risk of higher taxi prices, market monopolization, and diminished conditions for taxi owners without regulatory action.

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Uber has committed to selling one of Dantaxis two operating offices. It includes, among other things, taxi rides ordered on Dantaxis app and the phone number 4x48, as well as agreements with a number of taxi owners, who collectively have a large number of taxis.

As a result, Uber has pledged to sell one of Dantaxi's two operational offices. This includes taxi services booked via the Dantaxi app and its dedicated phone line, along with contracts involving a significant number of taxi owners. Additionally, Uber has agreed to shorter binding periods and notice periods for these taxi owners.

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We will now focus on implementing the agreed commitments. There will be no immediate changes for either passengers or drivers using Dantaxis or Ubers platforms, and we will share further information as the process progresses.

The Competition Council's chairman, Christian Schultz, stated that Uber's commitments have led to the authority's approval of the merger. This marks the first time the competition authority has intervened in a merger that had already been completed. Uber described its cooperation with the authority as "constructive" and stated that the divestment would not immediately affect passengers or drivers on either platform. The company welcomed the approval, emphasizing its focus on implementing the agreed-upon terms.

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We welcome the authority's decision to approve the acquisition of Dantaxi.