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Malaysia Competition Commission Proposes $20 Million Fine on Grab

The Malaysia Competition Commission (MyCC) has proposed a fine of RM86.8mil ($20.5 million) on Thursday against ride-hailing firm Grab Inc for collectively breaching the Competition Act 2010. They violated the law by imposing restrictive clauses on its drivers.

The Malaysia Competition Commission (MyCC) ruled that singapore-based ride sharing apps Grab had abused it's dominant position on market by restricting its driver from promoting and providing advertising services for its competitors. 

The commission also wants to impose a daily penalty of RM15,000 per day for the date of service of the proposed decision. However, MyCC chief executive officer Iskandar Ismail also said that this was merely a proposed decision and not final. They will listen to the company's defense.

He also added "MyCC further notes that the restrictive clauses had the effect of distorting competition in the relevant market that is premised on the multi-sided platform by creating barriers to entry and expansion  for Grab's existing and future competitors,"

“Grab will have the opportunity to present its defence and then we will decide if there are infringements or not, ” he told a press conference on Thursday (Oct 3).

Uber's deal to take a 27.5% stake in Grab in exchange had earlier raised a red flag with Singapore's competition watchdog, which last September fined both Grab and Uber a total of S$13mil (RM39.4mil) and imposed other measures to address competition concerns.

The Philippines also fined both companies 16 million pesos (RM1.3mil) last October, saying they had violated the conditions set by its competition regulator.

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