The Malaysia Competition Commssion (MyCC) has proposed a RM86.8 million fine against Grab Inc, Grab Car Sdn Bhd and MyTeksi Sdn Bhd (Grab) for collectively breaching the Competition Act 2010, The Star reports.
An enterprise is prohibited from engaging, whether independently or collectively, in any conduct which amounts to an abuse of a dominant position under the Competition Act, although being a monopoly or a dominant player is not against the law, according to the New Straits Times.
MyCC had found after its investigations that Grab had abused its dominant position by imposing restrictive clauses on its drivers, preventing them from promoting and providing advertising services for Grab’s competitors in the e-hailing and transit media advertising market, said The Star.
MyCC CEO Iskandar Ismail also proposed a daily penalty of RM15,000 from the date of service – today – of the proposed decision should Grab fail to take remedial action as directed by the commission in addressing the competition concerns. “They have 30 days to present their defence and until then, the penalty of RM15,000 will run continuously,” Iskandar said.
“We have just completed investigations. This is a proposed decision, not final. Grab will have the opportunity to present its defence and then we will decide if there are infringements or not,” he said, adding that the final decision would be made after Grab representatives have presented their defence.
Once the defence has been made, the fine could either increase or decrease, and Iskandar also added that while MyCC does not have power against mergers, they can look into the after-effects of a merger. The agency, which is under the Domestic Trade and Consumer Affairs Ministry, is looking into amending the law to improve its authority over mergers, he said.
Iskandar said the investigation had already commenced following the merger between Grab and Uber in March 2018, which saw Uber gain a 27.5% stake in Grab in exchange for the sale of Uber’s Southeast Asian business to Singapore-based Grab, and Uber CEO Dara Khosrowshahi joined Grab’s board.
The Competition and Consumer Commission of Singapore (CCCS) issued Grab a combined fine of US$9.5 million (RM39.3 million at the time) six months after that, and ordered Uber to sell vehicles from its local leasing business to any rival that makes a reasonable offer, while Grab was ordered to remove its exclusivity arrangements with drivers and taxi fleets.
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Is anyone here working in a company that allow you to promote competitors product?
The key word u mentioned there is “working”. Drivers are not their workers. I rest my case your honor
Not their worker then don’t use their platform. No one force them to install the app. Go work with the company that they are promoting.
Grab does not use the term ‘worker’ they used ‘partner’ when decribing their driver. At least thats the the term used during the earlier batch drivier briefing.
Serves you right Grab. That’s what you get after gettin rid of Uber in Malaysia.
Uber got rid of themselves and that is Grab’s fault? How does that logic work?
I used TnG ewallet becuz they giv out cashback.
That’s a lunch money for Grab… they’ve ultra deep pocket from investor money. Even double that won’t much a dent. Besides they’re focusing now to get the digital banking licence in Singapore.
No time to beat around the bush with MyCC unless it is like RM1b fine!
Good move to emulate Deutschland in finding faults from business entities and slaps hefty sum fine.
Suggest the authority lasik there myopia eyes sharpening the focus on all business entities either private or glc there are committing unfair business or cheats. Great way to increase ruler coffers.
MyCC must show they working…copy la wat CCCS done…job done for the year ;)
I’m a little confused here~~~
Let me get this right, are they getting fined because they don’t allow their drivers to advertise other transport hire options? Really?
Why would their drivers WANT to advertise other companies?
To me, it’s like giving a fine to Aeon supermarket because they don’t advertise Mydin, Jaya Grocers, ect. in their stores.
I must be missing something here. I hope someone can explain this situation to me.
Thanks.
Maybe coz the drivers installed all other ride hailing app and certain app are used more at certain area plus other app provide better return to the driver.
Its not like Aeon being fined coz they dont advertise other company. Its like Aeon being fined coz they prevent their employee from promoting that other company.
Main reason an employee will say bad things or does not promote the employer is coz of low ‘satisfaction’.
Thanks for replying, although I still don’t understand the issue.
If a “partner” or “employee” for Grab is not happy with their conditions and prefers another company, then why not just leave Grab?
If I had an employee who was denigrating my business and telling customers to use another business, then I would ask him or her to leave, or I would no longer employ them.
As I said in my initial post, I must be missing something here and it may not be as clear cut as I think it currently is.
Glad to hear others opinions.
Thanks.
If Grab is a Bumiputera company, it will get away with it. Why not MyCC propose a fine on TNG? the tolls and parking is dominated by TNG too and it’s anti-competition?
good..give Grab a tough lesson…
please lar, such racist comment shouldn’t allowed, now Malaysia Baharu ma!, be more factual, there must be a good reason which why MyCC proposed such fine.
you wanna talk facts? let’s outline few monopolies in MY, TnG, TNB, Syabas. Dont hide behind the shadow of crying racism when it’s blatantly staring you in the eyes!
The law does not prohibit monopoly. Go ahead and come out with your own payment platform.
Its happening worldwide, someone or some company will dominate certain things. Its the benifit of being smart and be the 1st to come out with something and builds on it. By the time the things is used everywhere, its hard for others start up to even start. Most sector is like that. If they fail to evolve at certain point, they will be left behind too.
Domination or monopoly can be done the right way and wrong way.
i was driving with grab 1year+, grab where got prohibited for advertising Mycar or other small potato company?? U can stick Mycar sticker big big on your own car sesuka hati, but why i wanna do that? what kind of soh*i organization mycc is that? simply make tuduhan nonsense to make money??
MyCC see an opportunity here. SG set the precedent so they took the opportunity. If SG can untung USD9.5 Million, Boleh-Land also cannot lose out.
Gomen kan Trillion hutang, siap we alls donation kat Tabung. Syukur Msia Aman.
And they used that money to subsidized your ron95 & sugar…ok maaa