The Grab-Uber Southeast Asia merger has hit a road block with Singapore’s competition commission demanding changes to ensure the market remains competitive.
The Competition and Consumer Commission of Singapore (CCCS) says it has created a virtual monopoly in the ride-hailing market with price rises almost as soon as the merger was completed.
The business was criticised for completing the merger while a CCCS investigation was being conducted.
The CCCS called for Grab to reverse the price rises and end its exclusivity contracts with drivers to allow other competitors to enter the market.
"CCCS proposes to impose financial penalties upon Grab and Uber respectively, as CCCS has found that they have carried the transaction into effect despite having anticipated potential competition concerns, and caused substantial lessening of competition in the ride-hailing platform services market in Singapore," it said.
The regulator warned it may ‘unwind’ the merger unless measures are taken.
The CCCS wants Uber’s car rental business Lion City Rental to be sold off to a Grab competitor to ensure there is market competition and not allow Grab to have a monopoly on vehicle rental fleets.
Grab said the commission is taking a ‘very narrow approach in defining competition.’
Competition regulators in Malaysia and the Philippines are also looking at post-merger competition in their markets.
