Grab/Uber fine: renewed competition enforcement focus in Singapore

Author: Amélie Labbé | Published: 24 Oct 2018

The Competition and Consumer Commission of Singapore’s (CCCS) landmark decision to fine two merged entities for lessening competition in the ride-hailing sector sends a signal to the market that there may be downsides to not notifying it that the deal could be problematic.

The regulator fined Uber and Grab a combined S$13 million ($9.4 million approximately) for their March 2018 tie-up, which saw Uber sell its southeast Asian business to Grab for a 27.5% stake in the company. Uber’s exit from the Singaporean market was part of a wider drive to exit the southeast Asian ride-sharing sector.

Its decision also covered a suite of measures that both companies had to implement to mitigate the combination’s impact on the market – which, with only two players, was already concentrated.

These measures included the fact that the merged entity wasn’t allowed to enter into any exclusive arrangements...


 

 

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