Singapore fines Grab, Uber RM39 million for merger

Singapore watchdog fines Grab, Uber US$9.5 million over merger

SINGAPORE's consumer watchdog today fined ride-hailing firms Grab and Uber almost S$13 million (RM39 million) for their merger in March previous year, the Straits Times reports.

Fining Uber S$6.6 million and Grab S$6.4 million, the regulator said 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.

The latest directions include ensuring that Grab drivers are not required to use Grab exclusively; removing Grab's exclusivity arrangements with any taxi fleet in Singapore; and requiring Uber to sell the vehicles of Lion City Rentals to any potential competitor who makes a reasonable offer, or to Grab but only with CCCS's approval.

In March, the ride-hailing landscape in Southeast Asia changed drastically after Grab announced its merger with Uber.

According to Reuters, the CCCS launched an investigation into the Uber-Grab merger just days after the deal was done.

This comes as CCCS concluded its investigations on the Grab-Uber sale, and said that the sale has infringed section 54 of the Competition Act.

More news: Pet Store Puppies Are Spreading Antibiotic-Resistant Bacteria

Grab said it completed the deal within its legal rights, and did not intentionally or negligently breach competition laws.

The time has come for Uber and Grab to face the wrath of Singapore's competition regulator.

In levying the fines, CCCS said that it considered both companies' turnovers, the nature, duration and seriousness of the infringement, and aggravating as well as mitigating factors such as if both parties were cooperative. It said commuters remained free to choose between street-hail taxis and private hire cars and that it "advocated" regulations that enabled drivers to freely choose the platform on which they drove.

In its response, Grab described CCCS's decision as "unfortunate" and assuming a "very narrow market definition". Despite not operating in the country yet, the company made a statement saying it welcomed the CCCS' decision and that it was "encouraged to see the measures being taken to level the playing field". We also note that the LTA is reviewing the regulatory framework for the point-to-point transportation sector, which we hope will address non-exclusivity across the industry. Grab's pre-merger pricing algorithm and driver commission rates also must be maintained, in order to protect riders' interests against excessive price surges and drivers' against spikes in commissions owed to Grab. For example, we are studying data and vehicle-sharing services to play our part to optimise Singapore's overall transport network.

In the Philippines, the competition watchdog last month approved the merger but imposed conditions related to areas including pricing and exclusivity arrangements to prevent Grab acting like a monopoly.

Related News:

  • HMD Global unveils Nokia 5.1 Plus with AI capabilities at Rs 10,999

    HMD Global unveils Nokia 5.1 Plus with AI capabilities at Rs 10,999

    The smartphone is priced aggressively in the sub-continent and we can thank the company's partnership with Flipkart for this. On the camera front, the handset boasts of an 8-megapixel selfie camera with f/2.2 aperture and 80.4-degree FoV.
    Privacy concerns flare over latest Chrome browser's 'forced login'

    Privacy concerns flare over latest Chrome browser's 'forced login'

    If you log into any Google service on that browser, it will automatically log Chrome into the corresponding Google account. Sync isn't enabled by default, meaning there's not much of a change for users from a practical privacy standpoint.
    China snubs USA  talks as tariffs swing broadside

    China snubs USA talks as tariffs swing broadside

    Beijing and Washington are locked in a festering trade war with both sides hitting each other's goods with tariffs worth billions. Some analysts say there is also a risk that China could allow its currency to weaken again to cushion the blow to its exporters.
  • Pandora is being purchased by SiriusXM for $3.5 billion

    Pandora is being purchased by SiriusXM for $3.5 billion

    Following the completion of the transaction, there will be no immediate change in listener offerings, according to both companies. The purchase will allow SiriusXM's satellite radio service to benefit from Pandora's strong mobile use and its advertisers.
    Rod Rosenstein Suggested Wearing a Wire With Trump, Invoking 25th Amendment

    Rod Rosenstein Suggested Wearing a Wire With Trump, Invoking 25th Amendment

    Those advisers also told Trump that it could benefit him that the people he sees as his enemies are portrayed as conspirators. The newspaper said its sources also included people who were briefed on memos written by FBI Deputy Director Andrew McCabe.
    Apple's new iPhones, Watch Series 4 now on sale

    Apple's new iPhones, Watch Series 4 now on sale

    For other users, the feature needs to be turned on manually by going into the Emergency SOS settings under the My Watch Tab menu. That said, so far many people have reported the Apple Watch 4 to be capable of identifying real falls from pretend ones.
  • Barrick Gold buys Africa's Randgold to become world's biggest gold miner

    Barrick Gold buys Africa's Randgold to become world's biggest gold miner

    Two-thirds of the directors of the combined company will be nominated by Barrick while one-third will be nominated by Randgold. Thornton will be executive chairman, while Randgold chief executive Mark Bristow will be president and chief executive.

    Sirius to Acquire Pandora in $3.5 Billion Online Radio Deal

    SiriusXM now owns convertible preferred stock in Pandora that represents a stake of approximately 15% on an as-converted basis. Six million users pay for Pandora's premium services, according to the company's most recent earnings report.
    Six Flags Fright Fest 30-Hour Coffin Challenge

    Six Flags Fright Fest 30-Hour Coffin Challenge

    Six Flags Saint Louis is challenging six people to spend 30 hours in a coffin in honor of its 30th year of Fright Fest. Plus ones will be allowed during operating hours, but coffin dwellers will be alone during non-operating hours.
  • Madrid will not play La Liga game in the USA , insists Perez

    Madrid will not play La Liga game in the USA , insists Perez

    Valladolid remain without a win, but have the satisfaction of coming back from 3-1 down to claim a 3-3 draw away to Celta Vigo. I heard it said that I was insane when I said this and that I was going to take over Madrid , while I was paying.
    Neither Cristiano Ronaldo nor Lionel Messi will attend FIFA's The Best gala

    Neither Cristiano Ronaldo nor Lionel Messi will attend FIFA's The Best gala

    Asked who he wants to win, Hazard revealed: 'I voted for Luka Modric , but Mo Salah is my friend so I would like him to win'. And after failing to be nominated, Messi has decided not to travel, according to Spanish newspaper Mundo Deportivo .
    Walcott: Everton can be better than Arsenal

    Walcott: Everton can be better than Arsenal

    Wenger was synonymous with a purity of style but he came to be accused of giving his players an easy ride. "It comes from the everyday work and the manager's way of playing the game as well".


Most liked

BUMBLEBEE Official Trailer #2 (2018) Haileen Steinfeld Sci-Fi Movie
On the run in the year 1987, Bumblebee finds refuge in a junkyard in a small Californian beach town. The studio convened a writers' room to brainstorm ideas for the Transformers cinematic universe.

Attack aftermath: Iran president says United States wants to cause insecurity
Mourners carried pictures of the dead along with banners reading "we will stand to the end" and "no to terrorism". President Hassan Rouhani has accused a USA -allied regional country of supporting the perpetrators.

Labour politicians join marchers to demand People’s Vote on Brexit deal
Starmer was asked by journalists about John McDonnell's comments following a Brexit fringe event at Labour party conference. May's Conservative Party criticised Corbyn for his move.

Anti-Kavanaugh Lawyer Claims Hearing Would Impede 'The Truth'
He has categorically denied her allegations, which suddenly put Kavanaugh's nomination on hold, as lawmakers seek answers. Capitol Police spokeswoman Eva Malecki says an additional 33 people were arrested Thursday afternoon on the same charge.

Officer accused in shooting death of neighbor fired by Dallas Police Dept.
Guyger claimed the door was ajar and she was able to open it. She has been charged with manslaughter for Jean's death. She was terminated after a hearing Monday morning.

49ers fear Garoppolo tore ACL vs. Chiefs, MRI on Monday
Beathard would likely start as quarterback, unless the 49ers front office decides to explore a trade or free agency. Top cornerback Richard Sherman went down with a calf injury, while backup Tarvarius Moore left with a wrist injury.

Trump defends court nominee: 'I am with him all the way'
Ford's testimony, Judge Kavanaugh will appear again before the committee", according to a statement from the committee. Deborah said she chose to speak out because she wants to work toward "human rights, social justice and social change".

Hayabusa2 Japanese robots send incredible photos from Ryugu asteroid
Hayabusa 2's mission will run through December 2019, so the collection of samples won't reach Earth until the end of 2020. One picture from the surface is blurred as it was taken mid-jump.

China and Vatican agree to landmark deal on bishop appointments
If not, "both sides will engage in a dialogue, and Beijing would eventually be expected to submit the name of another candidate". Beijing generally requires states that develop ties with China, sever formal diplomatic relations with Taiwan.

College classmate claims Kavanaugh exposed himself to her at party
Leland Keyser, a friend of Ford who said she believes Ford's account, similarly had no direct recollection of the gathering. Many did not respond to interview requests; others declined to comment, or said they did not attend or remember the party.

Trump tweet biggest insult to USA allies in ME: Iran
The Iranian oil minister warned that OPEC's authority is being jeopardized by the USA shadow effect on the allies in the region. Iranian Oil Minister Bijan Zanganeh said Trump's tweet "was the biggest insult to Washington's allies in the Middle East".

Rovers land on asteroid
Ryugu in an Apollo-type potentially hazardous asteroid (PHA), with a diameter of around 0.6 miles (1 kilometer). Once the probe completes taking samples from the asteroid, it will head back to Earth in late 2020.

Amazon unveils voice-controlled Echo smart power plug
Amazon Echo Smart Plug This device also got listed on the Amazon UK website priced at Euro 95, which is roughly Rs 8,000. To know what is happening with other smart devices in a home, the Echo speaker needs to be connected to them.

Motorola One Power India launch today: Here's everything to know
That said, the phone does feel comfortable to hold and the ergonomic curves at the edges fit perfectly in the hand. Jio customers can get benefits up to Rs 4,450 (applicable on Rs 198 and Rs 299 plans) while purchasing the device.

Russia blames Israel for downing of plane by Syrian forces
Israeli military, however, said that Syria's indiscriminate air defence fire was the cause of plane crash. It again offered condolences to Russian Federation .