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Singapore threatens to unwind Grab-Uber merger after ‘reducing competition’

Singapore’s anti-trust body might unwind Grab and Uber’s merger and proposed fines on the ride-hailing firms due to its “substantial lessening of competition”.

In a report by CNN Tech, the Competition and Consumer Commission of Singapore released a provisional decision after its findings concerning lesser competition, giving the companies two weeks to respond.

However, Grab expressed its disagreement with the comission’s findings, saying it defined competition too narrowly.

The company said in a statement: “[The regulator] has not taken into account the dynamic developments and intense competition going on over the past few months, from both new and incumbent taxi and ride-hailing players.”

“This provisional decision and proposed remedies are overreaching and go against Singapore’s pro-innovation and pro-business regulations,” it added.

Grab then said that it will take appropriate steps to appeal against the said decision.

The deal, where Uber received a 27.5% stake in Grab in exchange for the US company’s operations in eight southeast Asia countries, has also come under scrutiny from Philippines and Malaysia’s regulators.

Uber has directed request for comment to Grab.

(Photo source: reuters.com/ thesundaily.my)