Grab faces $21M fine from Malaysia watchdog - Mobile World Live

Grab faces $21M fine from Malaysia watchdog

04 OCT 2019

Taxi-booking platform Grab was handed an additional regulatory setback, with the Malaysia Competition Commission (MCC) threatening to fine the company nearly MYR87 million ($20.8 million) for anticompetitive behaviour.

The competition watchdog provisionally found Grab abused its dominant position by imposing a number of restrictions on drivers which prevented them from advertising services for the company’s competitors.

In addition to the fine, MCC imposed a penalty of MYR15,000 per day if the company fails to take remedial actions as directed by the commission in addressing the competition concerns.

In a statement, MCC CEO Encik Iskandar Ismail said: “It is important that barriers to entry for new players remain low and for existing players to have the ability to grow and compete on merits to ensure that competition can remain healthy.”

Ismail noted the decision is not final as Grab has 30 days to respond.

MCC said it started an investigation after receiving numerous complaints against Grab, following the merger.

In September 2018, Singapore’s Competition and Consumer Commission fined Grab and Uber a combined SGD13 million ($9.4 million) and ruled it must allow its drivers in the city state to work for competing services.

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Joseph Waring

Joseph Waring joins Mobile World Live as the Asia editor for its new Asia channel. Before joining the GSMA, Joseph was group editor for Telecom Asia for more than ten years. In addition to writing features, news and blogs, he...

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