Singapore yesterday fined ride-hailing firms Grab and Uber Technologies Inc S$13 million (US$9.52 million) for breaking competition rules when they merged, saying that the deal increased fares and threw up roadblocks for competitors.
Singapore-headquartered Grab in March agreed to buy US competitor Uber’s ride-hailing and food business in Southeast Asia, ending a bruising battle between the companies.
In return, Uber received a 27.5 percent stake in Grab.
However the deal came under scrutiny across the region, and the Competition and Consumer Commission of Singapore was among watchdogs in several countries that launched probes.
In the conclusion to its investigation, the commission said it had found the merger had substantially reduced “competition in the ride-hailing platform market in Singapore.”
Grab fares rose between 10 and 15 percent after the deal as the company reduced the number of points earned by riders and made it harder for them to redeem them, it said.
Potential competitors were hampered by exclusivity agreements that Grab forged with taxi companies, car rental partners and some of its drivers, the commission said.
The deals meant that drivers could not work for other companies.
The commission fined Grab S$6.42 million and Uber S$6.58 million “to deter completed, irreversible mergers that harm competition.”
The body also accused Grab and Uber of not getting the commission’s clearance before completing the deal.
In addition to the fines, the commission ordered several measures be implemented to ease fares and allow new players to compete with Grab, including reverting to premerger pricing and allowing Grab drivers to use other ride-hailing platforms.
Grab Singapore country head Lim Kell Jay said that the firm completed the deal “within its legal rights, and still maintains we did not intentionally or negligently breach competition laws.”
The Philippine Competition Commission last month approved the merger, but imposed conditions related to areas including pricing and exclusivity arrangements to prevent Grab from acting like a monopoly.
Malaysian authorities are still examining the deal.
NOT JUSTIFIED: The bank’s governor said there would only be a rate cut if inflation falls below 1.5% and economic conditions deteriorate, which have not been detected The central bank yesterday kept its key interest rates unchanged for a fifth consecutive quarter, aligning with market expectations, while slightly lowering its inflation outlook amid signs of cooling price pressures. The move came after the US Federal Reserve held rates steady overnight, despite pressure from US President Donald Trump to cut borrowing costs. Central bank board members unanimously voted to maintain the discount rate at 2 percent, the secured loan rate at 2.375 percent and the overnight lending rate at 4.25 percent. “We consider the policy decision appropriate, although it suggests tightening leaning after factoring in slackening inflation and stable GDP growth,”
DIVIDED VIEWS: Although the Fed agreed on holding rates steady, some officials see no rate cuts for this year, while 10 policymakers foresee two or more cuts There are a lot of unknowns about the outlook for the economy and interest rates, but US Federal Reserve Chair Jerome Powell signaled at least one thing seems certain: Higher prices are coming. Fed policymakers voted unanimously to hold interest rates steady at a range of 4.25 percent to 4.50 percent for a fourth straight meeting on Wednesday, as they await clarity on whether tariffs would leave a one-time or more lasting mark on inflation. Powell said it is still unclear how much of the bill would fall on the shoulders of consumers, but he expects to learn more about tariffs
Greek tourism student Katerina quit within a month of starting work at a five-star hotel in Halkidiki, one of the country’s top destinations, because she said conditions were so dire. Beyond the bad pay, the 22-year-old said that her working and living conditions were “miserable and unacceptable.” Millions holiday in Greece every year, but its vital tourism industry is finding it harder and harder to recruit Greeks to look after them. “I was asked to work in any department of the hotel where there was a need, from service to cleaning,” said Katerina, a tourism and marketing student, who would
i Gasoline and diesel prices at fuel stations are this week to rise NT$0.1 per liter, as tensions in the Middle East pushed crude oil prices higher last week, CPC Corp, Taiwan (台灣中油) and Formosa Petrochemical Corp (台塑石化) said yesterday. International crude oil prices last week rose for the third consecutive week due to an escalating conflict between Israel and Iran, as the market is concerned that the situation in the Middle East might affect crude oil supply, CPC and Formosa said in separate statements. Front-month Brent crude oil futures — the international oil benchmark — rose 3.75 percent to settle at US$77.01
RSS