Singapore says Grab-Uber merger lessened competition, proposes penalties

SINGAPORE (Reuters) – Singapore’s Competition and Consumer Commission said on Thursday the merger of Grab and Uber had substantially lessened competition in the ride-hailing business in the city-state and proposed to impose financial penalties on the two parties.

FILE PHOTO: A passenger of Grab bike fixes her helmet next to Uber driver at Manggarai train station in Jakarta, Indonesia, March 26, 2018. REUTERS/Beawiharta/File Photo

The commission said it had proposed the financial penalties because Uber and Grab carried out the transaction despite having anticipated potential competition concerns, leading to lesser competition in the sector in Singapore.

Uber sold its Southeast Asian business to bigger local rival Grab, marking the U.S. company’s second retreat from an Asian market. Uber received a stake in Grab in return.

Reporting by Jack Kim and Aradhana Aravindan; Editing by Himani Sarkar

Source link

Leave a Reply

Your email address will not be published. Required fields are marked *