SINGAPORE: The Competition and Consumer Commission of Singapore (CCCS) issued several interim measures on Friday (Apr 13), as it continued its investigation into Grab’s acquisition of Uber.
The measures include preventing Grab from taking over Uber’s operational data, such as historical trip data, to enhance its market position.
Grab will also need to ensure that new drivers entering into an agreement to drive on its platform are not subject to exclusivity obligations.
Another measure required the ride-hailing firms to maintain their pre-merger pricing and commission levels.
CCCS also said that an independent monitoring trustee will be appointed to make sure the measures are complied with.
The announcement came after CCCS’ own concerns about the merger, feedback from third-parties and a review of the companies’ written representations responding to the interim measures, which the competition watchdog proposed on Mar 30.
AdvertisementAdvertisementThe measures took effect Friday and will last “until the completion of CCCS’ investigation and/or resolution of any competition concerns that may arise from the transaction or unless otherwise varied or revoked by CCCS due to material changes in market conditions”, according to a media release.
The release also stated that the Uber platform will continue to be available in Singapore until May 7 instead of the previously stipulated Apr 15 “to allow a smoother transition time for riders and drivers”.
This is despite reports that Uber no longer has the capital and manpower to continue operations in Southeast Asia.
“Our funding is gone. Our people are gone. We don’t intend to come back to these markets,” Rappler reported Uber’s Asia Pacific chief business officer Brooks Entwistle as saying at a recent hearing with the Philippine Competition Commission.
CCCS said it thought the measures were necessary to address competition concerns, including the large combined market share Grab and Uber enjoy.
Barriers to entry into the ride-hailing market in Singapore are also “likely to be high due to strong network effects”.
“In particular, many drivers are constrained by exclusivity arrangements such that they can only drive for one ride-hailing platform. This makes it difficult for a new ride-hailing platform to attract drivers,” it said.
“After the transaction was completed on 25 March 2018, Uber and Grab have begun transferring assets (eg historical trip data) immediately,” said CCCS.
“Consequently, the (interim measures are) necessary to prevent further transfers and preserve CCCS’s ability to make appropriate directions if CCCS makes a finding of infringement at the end of CCCS’s investigations to remedy, mitigate or eliminate any adverse effects of such infringement,” the watchdog added.
Let's block ads! (Why?)
More...