Grab slams competition watchdog’s provisional findings on Uber deal

SINGAPORE — Ride-hailing firm Grab has slammed the Competition and Consumer Commission of Singapore (CCCS) for taking a “very narrow approach in defining competition”, as it described the competition watchdog’s provisional findings on its Uber deal and the proposed remedies as “overreaching and (going) against Singapore’s pro-innovation and pro-business regulations in a free market economy”.

In a press statement released just hours after CCCS issued its decision, the Singapore-based firm also said on Thursday (July 5) that it will appeal against the provisional ruling.

“We note that the provisional decision is not final nor effective yet, and we will submit our written representations to the CCCS before the deadline. We will take all appropriate steps to appeal against this decision,” said the firm’s spokesperson.

The spokesperson pointed out that while Grab is “one of the most visible players” in the ride-hailing industry in Singapore, it is not the only player in the market.  “CCCS has not taken into account the dynamic developments and intense competition going on over the past few months, from both new and incumbent taxi and ride-hailing players,” she added.

Releasing its adverse findings some three months after it launched an investigation into the sale of Uber’s South-east Asia ride-hailing business to Grab, the CCCS ruled that the Grab-Uber deal had led to a “substantial lessening of competition” and price hikes in Grab rides.

It proposed several remedies to restore competition in the market. They include removing exclusivity obligations and lock-in periods for drivers, and maintaining Grab’s pricing algorithm and commission rates prior to the merger.

The commission also proposed that Grab and Uber be fined for entering into the deal “despite having anticipated potential competition concerns”.

Both companies could have sought the CCCS’ clearance and advice, but instead, on March 26, they “proceeded to complete the transaction and began the transfer of the acquired assets immediately”.

They did so “despite their own view that the outcome would be irreversible, thus rendering it practically impossible to restore the status quo pre-merger”, the watchdog had said in a seven-page media release on Thursday.

In response, Grab said it had “proactively engaged” the CCCS before the transaction was signed.

“We conducted the acquisition legally and in full compliance with Singapore’s applicable competition laws. We fully cooperated with the CCCS throughout the course of their review, and had proactively proposed voluntary commitments over and above the interim measures directions, to ensure consumers’ and drivers’ interests are taken care of, which the CCCS had rejected,” said the spokesperson.

Grab and Uber have 15 working days from Thursday to make their representations to the commission.