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