Business

Malaysia proposes to fine Grab $28m for violating competition law

KUALA LUMPUR: Malaysia's competition regulator yesterday proposed a fine of over RM86 million (S$28 million) on ride-hailing firm Grab for violating competition law by imposing restrictive clauses on its drivers.

The Malaysia Competition Commission (MyCC) ruled that Singapore-based Grab, which has backing from Japan's SoftBank Group, had abused its dominant position in the market by preventing its drivers from promoting and providing advertising services for its competitors.

"MyCC further notes that the restrictive clauses had the effect of distorting competition in the relevant market that is premised on multisided 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 RM15,000 beginning yesterday for as long as Grab fails to address the concerns.

Mr Iskandar said Grab had 30 working days to make its representations to the commission before a final decision would be made.

Grab said it was surprised by the decision as it believed it was "common practice for businesses to decide upon the availability and type of third-party advertising on their respective platforms, tailored according to consumers' needs and feedback".

"We maintain our position that we have complied fully with the Competition Act 2010," a Grab spokesman told Reuters. - REUTERS

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