US-based company company company Google Technologies sold its Southeast Asia-based company to regional giant Grab in March in exchange for a 27.5% stake in the Singapore-based company.
Just a few days after the agreement was announced, the CCCS opened an investigation into whether the deal violated antitrust law.
Reuters said today that Uber was fined 6.58 million Singapore dollars (more than 4.8 million USD) while Grab was fined 6.42 million Singapore dollars (nearly 4.6 million USD). The CCCS said the sanctions are aimed at "preventing completed, irreversible mergers that harm competition".
"The mergers significantly reduce competition and the CCCS has taken action against the Grab-Uber merger as it has eliminated Grab's biggest rival, causing losses to Singaporean passengers and drivers. Companies can continue to innovate in this market, through other methods than mergers to combat competition," said CEO of CCCS - Toh Han Li.
The agency said Grab has increased prices after eliminating Singapore's biggest competitor, Uber. The fee that customers have to pay for each trip, after deducting the promotion, increases by 10 - 15%. In addition, CCCS said it has received many complaints from passengers and drivers about Grab's rental and commission prices.
Grab is required to remove its monopoly requirements on drivers and taxi companies; maintain the valuation and commission algorithm for drivers as before the merger.
The CCCS also ordered Uber to sell Lion City rentals' vehicles in Singapore to any potential competitor to make a reasonable offer based on market value, and banned Uber from selling vehicles to Grab without regulatory approval.
Grab said it has completed the deal with its legal rights and is still maintaining it without intentionally or carelessly violating competition law.
Grab said that the company has not increased fares since the merger and promised to maintain price policies as well as commissions for drivers. The company will still keep weekly price data for CCCS to track.
The airline also said it will comply with the remedies set by the CCCS.
