Singapore fines Grab and Uber $9.5 million after their merger deal was found to violated anti-competition laws. The fine was considered small compared with the firms’ multi-billion dollar valuations.
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.
Uber said it believed the decision was based on an “inappropriately narrow definition of the market” and would consider appealing.
Grab said it completed the deal within its legal rights and did not intentionally or negligently breach competition laws. It would abide by remedies set out by the regulator, it added as cited from Reuters.
Meanwhile, Competition and Consumer Commission of Singapore declared the deal is “anti-competitive” following a months-long investigation into its impact on Singapore. But, the fine won’t unwind the deal, which had been an option. The fines relate only to the businesses in Singapore, which is just one of eight markets where Uber and Grab competed.
Uber Technologies Inc sold its Southeast Asian business to bigger regional rival Grab in March in exchange for a 27.5 percent stake in the Singapore-based firm.
Sources: Reuters.com, techcrunch.com