Malaysia is taking Singapore’s lead to look into whether ride-hailing service Grab’s takeover of Uber’s operations in Southeast Asia may have violated its competition laws.
Minister in the Prime Minister’s Department Datuk Seri Nancy Shukri said that Grab assured her during a meeting prior to the announced takeover on March 26 that the deal would not affect existing fare structures.
Commuters in Malaysia had voiced concerns to the publication that the acquisition would cause fares to rise and service quality to decline.
Both Malaysian agencies had said they would monitor Grab to ensure that it does not abuse its new dominance of the market.
On March 30, the Competition Commission of Singapore said that it had reasonable grounds to suspect that the deal would be detrimental to competition. It also said it was investigation the pact as well as proposed interim measures that will require Grab and Uber to maintain their pre-transaction independent pricing.
In exchange, Uber will receive a 27.5% stake in Grab and Uber chief executive Dara Khosrowshahi will join Grab’s board.