Grab And Uber Get $9.5m Fine From Singapore Competition Regulator
It's a big fine for the ride sharing companies.
Following the Grab-Uber deal in March, which saw Uber taking a 27.5 percent share in Grab, Singapore's Competition Regulators have fined the companies $9.5 million. The deal, they have found, has substantially decreased competition in the ride-hailing market in Singapore. The board fined Grab $4.7 million and Uber $4.8 million - a drop in the ocean for Uber which is one of the most highly valued startups in the world and Grab who are currently in the middle of a whopping $3 billion funding round.
Speaking in a statement, CCCS chief executive Toh Han Li said : “Mergers that substantially lessen competition are prohibited and CCCS has taken action against the Grab-Uber merger because it removed Grab’s closest rival, to the detriment of Singapore drivers and riders. Companies can continue to innovate in this market, through means other than anti-competitive mergers.” While Grab took a slightly different tact and said: “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." But it was bitter rival Go-Jek who had the last word, taking this opportunity to dig the knife in about the highly unpopular merger, saying: “We are glad that the Commission has come to the same conclusion that we have – that new entrants into the market are facing a very high barrier to entry. We’re encouraged to see the measures being taken to level the playing field – it will have a significant effect on our strategy and timeline."