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 13million SGD (9.5 million USD) for violating its competition law during theirmerging, pushing taxi fares up and restricting opportunities of rivals.
UberTechnologies Inc sold its Southeast Asian business to bigger regional rivalGrab in March this year in exchange for a 27.5 percent stake in theSingapore-based firm. But the deal also put both firms under the watch ofauthorised agencies of many countries, including the Competition andConsumer Commission of Singapore.
Thecommission concluded that the deal has seriously affected the market inSingapore, noting that effective fares on Grab rose 10 to 15 percent after thedeal, and that the firm now holds a Singapore market share of around 80percent.
Grab’srivals have also met difficulties from exclusive deals of Grab and taxi servicesuppliers or car renters and drivers, which prevent driver to access otherride-sharing companies.
Uberwas fined 6.58 million SGD (4.8 million USD) while Grab was fined 6.42 millionSGD (4.7 million USD). Grab has also been told to maintain its pre-mergerpricing algorithm and driver commission rates, while allowing its drivers towork with other similar service suppliers.
Grab'srepresentatives in Singapore affirmed that the company finished its deal withUber without violating the country's competition law.
In thePhilippines, where the deal has been approved, the competition watchdog hassaid it is monitoring Grab’s compliance with conditions intended to improve thequality of service, with any breaches possibly resulting in fines.
Malaysianauthorities are also considering the deal.-VNA
VNA
