Uber & Grab hit with a fine of $13M due to “anti-competitive” merger

Uber and Grab have been hit with combined fines of $13 million due to the violation of Singapore’s anti-competition laws.

Grab was fined approximately $6.4M while Uber was fined approximately $6.58M by the CSSS (Competition and Consumer Commission of Singapore). The fines imposed on both Uber & Grab however will not unwind the deal. The fines relate only to the businesses in Singapore, which is just one of eight markets where Uber and Grab competed.

Chiefly, the CCCS found that through the merger, Grab has raised its market share from 50 percent to 80 percent.

“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 Act by substantially lessening competition in the ride-hailing platform market in Singapore,” the agency wrote.

Moving forward the commission will be rolling out additional measures aimed at easing the impact of this merger on both riders and drivers. Under these measures, Grab will have to remove its existing exclusivity arrangements with taxi fleets and drivers, as well as maintain pre-merger pricing methodology and driver commission rates.

Uber will also be required to sell vehicles from its car rental arm Lion City Rentals to any potential competitor with a “reasonable offer”. Any sale of said cars to Grab will have to be approved by CCCS.

These measures will be suspended in the event where a competitor attains 30 percent market share for one month. Concurrently, both Uber & Grab will have their penalties lifted in the event where a competitor attains 30 percent market share for 6 consecutive months.

Read more at: https://www.straitstimes.com/singapore/transport/grab-uber-fined-13m-for-violating-competition-laws