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Uber to appeal against decision by Singapore competition regulator

This article is more than 12 months old

Uber has decided to appeal against a decision by the Singapore competition regulator that its merger with regional rival Grab violated the competition laws, the company said yesterday.

Last month, Singapore slapped ride-hailing companies Grab and Uber with fines and imposed restrictions on their businesses to open up the market to competitors, after concluding that their merger had driven up prices. It fined Grab $6.42 million and Uber $6.58 million.

Uber said it was making the appeal independently of Grab, as a matter of principle. Grab said it would not appeal against the regulator's decision.

The Competition and Consumer Commission of Singapore (CCCS) ruling that the transaction led to a substantial lessening of competition, and that Uber had intentionally breached the law, was "unsupported and incorrect", Uber said in a statement.

NARROW DEFINITION

Uber asked the CCCS to annul its fine, and said the regulator had used a very narrow definition of the ride-hailing market.

It also pointed to Go-Jek's impending entry into the city-state, saying the Indonesian ride-hailing company would make a formidable competitor.

Uber disputed the CCCS allegation that Uber knew the transaction infringed the law but nevertheless moved ahead.

"To the contrary, our view has always been that in a properly defined market - including at the very least ride-sharing, street-hail taxis and new entrants - the transaction respects the law and does not raise significant concerns," it said.

Uber sold its South-east Asian business to bigger regional rival Grab in March in exchange for a 27.5 per cent stake in the Singapore-based firm. But the deal invited regulatory scrutiny. - REUTERS

CONSUMER ISSUES