A view of Uber and Grab offices in Singapore on Mar 26, 2018. (Photo: Reuters) Hanoi (VNA) - Singaporean authorities have fined Grab and Uber total 13 million SGD (9.5 million USD) for violating its competition law during their merging, pushing taxi fares up and restricting opportunities of rivals.
Uber Technologies Inc sold its Southeast Asian business to bigger regional rival Grab in March this year in exchange for a 27.5 percent stake in the Singapore-based firm. But the deal also put both firms under the watch of authorised agencies of many countries, including the Competition and Consumer Commission of Singapore.
The commission concluded that the deal has seriously affected the market in Singapore, noting that effective fares on Grab rose 10 to 15 percent after the deal, and that the firm now holds a Singapore market share of around 80 percent.
Grab’s rivals have also met difficulties from exclusive deals of Grab and taxi service suppliers or car renters and drivers, which prevent driver to access other ride-sharing companies.
Uber was fined 6.58 million SGD (4.8 million USD) while Grab was fined 6.42 million SGD (4.7 million USD). Grab has also been told to maintain its pre-merger pricing algorithm and driver commission rates, while allowing its drivers to work with other similar service suppliers.
Grab's representatives in Singapore affirmed that the company finished its deal with Uber without violating the country's competition law.
In the Philippines, where the deal has been approved, the competition watchdog has said it is monitoring Grab’s compliance with conditions intended to improve the quality of service, with any breaches possibly resulting in fines.
Malaysian authorities are also considering the deal.-VNA
VNA
