Malaysia proposes US$20 million fine on Grab for abusive practices

VNA
The Malaysia Competition Commission (MyCC) has proposed a fine of over 86 million ringgit (US$20.5 million) on ride-hailing firm Grab for violating competition law by imposing restrictive clauses on its drivers.

Illustrative image (Source: Reuters)

Illustrative image (Source: Reuters)

The commission ruled that Grab had abused its dominant position in the market by preventing its drivers from promoting and providing advertisement services for its competitors.
The restrictive clauses had the effect of distorting competition in the relevant market that is premised on multi-sided platforms by creating barriers to entry and expansion for Grab’s existing and future competitors, MyCC Chairman Iskandar Ismail said.
MyCC also imposed a daily penalty of 15,000 ringgit ($3,600) beginning on October 3 for as long as Grab fails to address the concerns.
Iskandar said Grab had 30 working days to make their representations to the commission before a final decision would be made.
Singapore-based Grab has yet to respond to the decision.
The regulator said last year it would monitor Grab for possible anti-competitive behavior after its acquisition of rival Uber Technologies Inc’s Southeast Asian business in March 2018.
Under Malaysia’s Competition Act, a monopoly or dominant player in the market is not an infringement of the law, unless it abuses its position in the market.

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