Uber and Grab fined $9.5 million for ‘mergers that hurt competitors’

The time has actually come for Uber and Grab to deal with the rage of Singapore’s competitors regulator.

The Competition and Consumer Commission of Singapore (CCCS) has actually fined the ride-hailers a combined S$13 million ($ 9.5 million) over the Uber-Grab merger considered to have actually harmed competitors in the nation’s ride-hailing market, Channel NewsAsia reported Sunday.

Individually, Uber was fined S$ 6.58 million and Grab S$ 6.42 million, charges the guard dog enforced in order to “deter completed, irreversible mergers that harm competition.” Despite the fines, the Uber-Grab merger was not needed to be unwound.

Uber accepted offer its Southeast Asia operations to Singapore- based competitor Grab in March, in exchange for a 27.5 percent stake. The offer consisted of turning over ride-sharing, food shipment, and payments and monetary services in Singapore, in addition to in Cambodia, Indonesia, Malaysia, Myanmar, Philippines, Thailand and Vietnam.

Just days after Grab revealed the merger, the CCCS introduced an examination, raising issues it would harm competitors. Grab launched a declaration Sunday stating it had actually been certified with the guard dog in the evaluation.

“Today we are glad that the CCCS has completed its investigations on the Grab-Uber transaction and did not require the transaction to be unwound,” it stated.

“Grab completed the Transaction within its legal rights, and still maintains we did not intentionally or negligently breach competition laws.”

But Grab echoed its earlier belief towards the CCCS’ “narrow” technique to its meaning of competitors.

“However, it is unfortunate that the CCCS is taking a very narrow market definition in arriving at its conclusion that the Transaction has led to a substantial lessening of competition,” its declaration checked out. “Commuters are free to choose between street-hail taxis and private hire cars, and it is a fact that private-hire car drivers’ incomes are directly impacted by intense competition with street-hail taxis.”

“Grab believes it should not be the only transport player subjected to non-exclusivity conditions,” Lim Kell Jay, head of Grab Singapore, stated on top of the preliminary declaration. “This is inconsistent with taxi industry practices and does not create a level playing field.”

As for whether it will appeal the choice, Grab informed CNET in an e-mail, “We will review the CCCS’ final decision in detail before making a decision.”

Aside from Grab, Singaporeans can drawback a flight with Singapore- based hailers Ryde and TADA, the latter of which just signed up with the competitors in July this year.

Also in its method is Go-Jek, a ride-hailer from Indonesia which stated in May it would introduce its services in Singapore and other Southeast Asian nations in the coming months. Despite not running in the nation yet, the business made a declaration stating it invited the CCCS’ choice which it was “encouraged to see the measures being taken to level the playing field.”

“We are now confident that Singapore will have a robust, efficient and competitive market, and that our arrival will have a significantly positive impact on the lives of people in Singapore,” Go-Jek stated.

Uber did not right away react to an ask for remark.

First releasedSept 23, 11: 02 p.m. PT.

Update, 11: 49 p.m.: Adds Go-Jek declaration.