Photo of Uber and Grab offices from Straits Times

After losing S$652 million through Temasek Holdings subsidiaries, the Competition Commission of Singapore (CCS) complained it is “unfair” that Uber and Grab did not notify the government of acquisition. The CCS now says it wants to take actions against the two multi-national companies, including imposing a fine of 10% of the profits of Grab up to 3 years, after an alleged “investigation” into the “unnotified transaction”:

“We have grounds to suspect that Grab and Uber have infringed the Competition Act and has proposed interim measures to preserve competition while it investigates their merger… Both companies must not take any action that will lead to the integration of their businesses here, and affect the viability and saleability of the businesses…In the event of an infringement of the Competition Act, the commission can impose substantial financial penalties of up to 10 per cent of the turnover of the business in Singapore for each year of infringement, up to a maximum of three years.”

More notably, the CCS indicated they feel disrespected:

“They also should not take actions that could prejudice the commission’s ability, power and options to subsequently direct the divestment of business operations in the affected markets. Another proposed interim measure requires that both companies do not obtain any confidential information about each other. These include pricing, formulas, customers and drivers. Grab should also ensure that Uber drivers joining its platform of their own accord are not subject to any exclusivity clauses, lock-in periods and/or termination fees. Lastly, both companies must not take actions that could affect the commission’s ability to impose remedies.”

The Singapore division of Grab said in a media response that they will lodge a notification before April 16, more than a month after the confirmed acquisition deal:

“Grab will make a voluntary notification of the acquisition to the commission no later than April 16. Grab had engaged with the commission prior to the deal and has conducted due diligence and legal analysis before entering into and concluding the merger.”