Uber Technologies Inc sold its South-east Asian business to bigger regional rival Grab in March in exchange for a 27.5% stake in the Singapore-based firm.
Singapore’s competition watchdog has fined Uber and Grab more than S$13 million (US$9.5m) over their “anti-competitive” deal to merge the two ride-hailing companies’ operations in the country.
Uber Technologies Inc sold its South-east Asian business to bigger regional rival Grab in March in exchange for a 27.5% stake in the Singapore-based firm.
Fining Uber S$6.6 million and Grab S$6.4 million, the Competition and Consumer Commission of Singapore said effective fares on Grab rose 10% to 15% after the deal, and that the firm now holds a Singapore market share of around 80%.
The regulator said the fines were imposed to “deter completed, irreversible mergers that harm competition”.
The commission directed Grab to remove exclusivity agreements with taxi fleets in Singapore.
Toh Han Li, chief executive of the commission, said the Grab-Uber merger removed Grab’s closest rival, “to the detriment of Singapore drivers and riders”.
Uber said it believed the decision was based on an “inappropriately narrow definition of the market” and would consider appealing.