The Competition Commission of Singapore (CCS) stated that it has not received formal notifications from Grab and Uber regarding the acquisition of Uber’s Southeast Asia business.
According to Channel NewsAsia which has asked for its clarification, CCS had written to both companies to clarify the details of the deal, noting that under Singapore’s competition law, mergers that may result in significantly lesser competition are prohibited.
It also said that in the event CCS finds that a merger situation is expected to result in an SLC (substantial lessening of competition), CCS has powers to give directions to remedy the SLC.
CCS said, for example, that it can require the merger to be unwound or modified, as well as issuing interim measures prior to the final determination of the merger.
The Land Transport Authority (LTA) said in response to queries that it will study the impact of the Grab-Uber deal.
“We will ensure that no one single market player dominates the sector to the detriment of commuters and drivers. We note that the Competition Commission of Singapore has the power to review any merger or acquisition that might affect competition in any market in Singapore,” the authority said.
LTA the stated that it was also separately reviewing the regulatory framework to license the private-hire car booking service operators, saying, “The strategic intent is to keep the PHC and taxi industries open and contestable.”
Grab has confirmed on Monday (26 March) the decision to acquire Uber’s Southeast Asian operations, which will integrate Uber’s ride-sharing and food delivery business in the region into its platform.
It is said that Uber will take a 27.5 percent stake in Grab and Uber CEO Dara Khosrowshahi will join Grab’s board.