By Jon Russell
Uber and Grab have been hit with combined fines of $9.5 million after their merger deal was found to have violated Singapore’s anti-competition laws.
Grab acquired (and then merged/closed) Uber’s Southeast Asia business in March, but the Competition Commission of Singapore today declared the deal is “anti-competitive” following a months-long investigation into its impact on Singapore.
The CCCS levied an SG$6,582,055 (US$4.8 million) fine on Uber and an SG$6,419,647 (US$4.7 million) fine on Grab, but it won’t unwind the deal, which had been an option. The fines relate only to the businesses in Singapore, which is just one of eight markets where Uber and Grab competed. Grab has raised $6 billion from investors so it shouldn’t have an issue paying that back.
Chiefly, the CCCS found that Grab had raised prices by 10-15 percent following the deal, whilst its market share grew to 80 percent. That’s despite Grab co-founder Hooi Ling Tan claiming that there is still plenty of competition across Southeast Asia.
“At the conclusion of its investigation, CCCS has found that the Transaction is anti-competitive, having been carried into effect, and has infringed section 54 of the Competition …read more
Source: Tech Crunch