We’ve fully complied with Competition Act, says Grab

PETALING JAYA: Grab Car Sdn Bhd says it has always complied with the Competition Act 2010 and is surprised with the decision by the Malaysian Competition Commission (MyCC) which is proposing to fine the company RM86.8 million for breaching anti-monopoly laws.

“We maintain our position. It’s common practice for businesses to decide upon the availability and type of third-party advertising on their respective platforms, tailored according to consumers’ needs and feedback,” said a company spokesman in a statement today.

The fine comes in addition to a proposed daily fine of RM15,000 beginning today.

Grab said company lawyers were studying the proposed decision and a written representation will be submitted to the MyCC by Nov 27.

MyCC had proposed to fine GrabCar Sdn Bhd for breaching anti-monopoly laws following the e-hailing company’s merger with Uber.

MyCC CEO Iskandar Ismail announced today the decision was based on complaints on Grab since it took over Uber services in Malaysia last year.

Following the merger, Grab became the dominant player in the local e-hailing industry.

Iskandar said the commission has given Grab one month to come up with its defence.

Iskandar said Grab had become very dominant in the industry.

“The company has also a restrictive clause that prevents their drivers to promote other e-hailing companies in their cars.

“Bear in mind, drivers only drive for Grab using their own cars and they are not Grab’s employees,” he added.

Earlier last year, the Competition and Consumer Commission of Singapore (CCCS) fined Grab and Uber S$13 million.

CCCS said that the fine was imposed to “deter completed, irreversible mergers that harm competition”.

In July, Transport Minister Anthony Loke Siew Fook had said there are 31 e-hailing operators providing services, giving commuters a choice of cheaper fares.

“If there is a fare increase, they have the choice of using other e-hailing services with cheaper fares.

“We do not want this industry to be a monopoly and there should be competition. If there is competition, the fare will be cheap and no e-hailing company can wantonly increase their prices,” he had said. - FMT