Grab Surprised by MyCC’s RM86.7M Fine Proposal

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E-hailing company, Grab, said it was surprised by the Malaysia Competition Commission’s (MyCC) proposal to impose an RM86.7 million fine against it for breaching the Competition Act 2010.

The company maintained that it had fully complied with the Competition Act 2010.

“While our legal counsels are studying the proposed decision, we believe that it is 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 Grab spokesperson in a statement today.

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The spokesperson added that Grab would be submitting its written representations to the MyCC by Nov 27.

Earlier today, the commission has proposed to impose the RM86.7 million fine on Grab Inc as well as a daily penalty of RM15,000 against the e-hailing firm starting from today after it was found that Grab had abused its dominant position by imposing some restrictive clauses on its drivers.

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.

“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”.

The Philippines fined them 16 million pesos a month later, saying the firms violated the conditions set by its competition regulator.

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.