KUALA LUMPUR (Reuters) – Malaysia’s competition regulator on Thursday proposed a fine of more than 86 million ringgit ($20.53 million) – the ride from firm Suit for the violation of any of the country’s competition law, the imposition of any restrictive covenants on its drivers.
FILE PHOTO: A Suit and logo will be displayed at the Money 20/20 Asia pacific Fintech event in Singapore, March 21, 2019. REUTERS/Anshuman Daga/File Photo
The Malaysia Competition Commission (MyCC) has ruled that the Singapore-based Griffins, who have strong support from Japan’s SoftBank Group Corp, had abused its dominant position in the local market, by preventing the driver of the promotion, and the provision of advertising services to its competitors.
“MyCC indicates that the restrictions have had the effect of distorting competition in the relevant market, which is based on multi-sided platforms, by creating barriers to entry and expansion are up for Grabs in the current and future competition,” MyCC Chairman of Iskandar, Ismail said at a news conference.
MyCC imposed a daily fine of 15,000 ringgit in early on Thursday, as long as the Suit failed, “and to take remedial action, as may be prescribed by the commission, in its approach to the competition.
Don’t immediately respond to a request for comment.
Iskandar said, Grab the 30 days to make their representations to the committee before a final decision is to be made.
The regulator said last year it would be the monitor Suit for any anti-competitive behaviour, following the acquisition of arch-rival Uber Technologies Inc. ‘ s Southeast Asian business, in March of 2018.
Malaysia is the third country in the region in order to punish the Grab, after the deal with Uber.
Last year, the two companies have been fined by the anti-trust watch dogs in Singapore, and the Philippines, prior to the merger. Singapore has said that the deal had pushed up the prices while in the Philippines, in criticizing the companies for the completion of the merger, so a bit of a disappointment in the quality of the service provided.
However, Iskandar said, Malaysia’s regulator, the research was based on the complaints received against the ride-coming company, and it is not due to its near-monopoly on the market of the Uber deal.
Under Malaysia’s competition law, monopoly power or a dominant player in the market, it is not a violation of the law, unless he / she is abusing its position in the market.
“MyCC is no merger of powers. We can’t unscramble the egg,” Iskandar said.
Report by Liz Lee; Writing by Joseph Sipalan; Editing by Christian Schmollinger