Grab-Uber merger may have infringed Competition Act: CCS

March 30, 2018 | 15:14

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The Competition Commission of Singapore (CCS) has said that it has "reasonable grounds" to suspect that the merger of Grab and Uber has infringed the Competition Act.

Grab-Uber merger may have infringed Competition Act: CCS, photo: VNA/ AFP

It has also proposed interim measures to maintain market competition and invited the companies to present their positions before it decides whether to impose the measures.

CCS started looking into Grab's acquisition of Uber's Southeast Asia operations on Tuesday (Mar 27), a day after the deal was announced. The companies did not inform CCS about the transaction, it had said.

It said on Friday that the deal may lead to "substantial lessening of competition" for the private-hire car industry in Singapore.

CCS has not completed its investigation but to preserve competition and market conditions, it proposed some interim measures.

The key proposals are that Uber and Grab will have to maintain their independent pricing, pricing policies and products, and they should not integrate their businesses in Singapore.

They should also not obtain any confidential information from each other, including that pertaining to pricing, formulas, customers and drivers.

"Lastly, Grab shall ensure that Uber drivers joining Grab’s ride-hailing platform of their own accord are not subject to any exclusivity clauses, lock-in periods and/or termination fees," it said.

CCS said that while it has the power to issue interim measures while it is conducting investigations into unnotified mergers, this is the first time it is proposing to exercise these powers.

The companies will be given the opportunity to make written representations to the CCS for its consideration.

"If issued, the (measures) takes effect immediately from the date it is issued and shall have effect until the completion of CCS's investigation or unless otherwise varied by CCS," it said.

CNA

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