Singapore’s anti-trust regulator has slapped Grab and Uber with fines of more than $9.5 million over their ‘anti-competitive’ merger.
The Competition and Consumer Commission said it was a bad deal for consumers due to the ‘substantial lessening of competition.’
Uber exited Southeast Asia and sold its regional business to Grab, which effectively gave Grab a 80% market share.
"Mergers that substantially lessen competition are prohibited and CCCS has taken action against the Grab-Uber merger because it removed Grab’s closest rival, to the detriment of Singapore drivers and riders," said Toh Han Li, CCCS chief executive.
The commission cited the exclusivity agreements with both drivers and taxi companies, making it extremely difficult for a new player to enter the market.
Grab must now ditch these exclusivity agreements, it said.
Uber was also ordered to sell vehicles in its Lion City Rentals business to ‘any potential competitor who makes a reasonable offer based on fair market value.’
