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SINGAPORE: The Competition and Consumer Commission of Singapore (CCCS) has lifted the measures it imposed on Grab in September 2018 over its merger with Uber.
This comes after Singapore’s new point-to-point (P2P) transport regulatory framework came into effect on October 30, the watchdog said in a press release on Friday (November 20).
Parliament passed the P2P Passenger Transportation Industry Bill in August last year, which requires all transit and passenger transportation service providers with a fleet of more than 800 vehicles to be licensed.
READ: Private rental car operators will get a license starting next year when Parliament approves a new regulatory framework
Amid the COVID-19 outbreak, the implementation of the regulatory framework was delayed from June to October this year to allow operators more time to prepare their applications.
Since the framework’s launch, companies such as Tada Mobility, Gojek, Grab, ComfortDelgro and Ryde have obtained transportation service operator licenses, CCCS said.
Other existing taxi operators have also been granted limited transportation service operator licenses to provide call reservation services.
“As a result, there are currently several operators in the P2P sector. The P2P regulatory framework administered by the Land Transportation Authority and the Public Transportation Council ensures that all licensed operators cannot prevent their drivers from driving for other operators, ”said CCCS.
“The regulatory framework also ensures that P2P rates are transparent and clearly communicated to travelers, leaving rate levels to be determined by market forces.
“With a sector regulatory framework already in place, CCCS considers it timely to release the instructions imposed on Grab, as the issues identified are considered and addressed more appropriately within the context of the sector regulatory framework,” the commission said.
READ: Singapore’s competition watchdog fines Grab, Uber S $ 13 million in total for merger deal
CCCS issued an infringement decision against Grab and Uber in September 2018, in connection with the March sale of Uber’s Southeast Asian business to Grab for a 27.5% stake in the Singapore-based company.
The deal led to a “substantial decrease in competition” in the ride-sharing market, CCCS said at the time, highlighting Grab’s price increase and changes to its loyalty program after the merger.
It issued instructions to both companies to address these concerns, according to which Grab should maintain its pre-merger prices, pricing policies and product options, and remove all exclusivity obligations on taxi drivers and fleets.
These sought to lessen the impact of the agreement on drivers and passengers, and keep the market open and competitive, CCCS said.
Uber and Grab were also fined together a total of S $ 13 million for their merger. CCCS said the sanctions were imposed to “deter completed and irreversible mergers that harm competition.”
On Friday, CCCS noted that Grab submitted a request in July to impose a platform fee of S $ 0.30 for transportation services.
The commission said it will no longer issue a decision on the application, after the lifting of the instructions imposed on Grab.
