The Government Will Consider Legal Action If Grab Raises Its Fares
The government can do so under the Competition Act 2010.
By Katrina Khairul Azman — 28 Mar 2018, 04:41 PM
In light of Grab’s acquisition of Uber’s Southeast Asian operations earlier this week, Minister in the Prime Minister Department Datuk Seri Nancy Shukri confirmed that Grab's fare will not be affected
Channel News Asia reported that the Minister said this following a meeting with Grab on 26 March, the day the Grab-Uber merger in Southeast Asia was officially announced.
Nancy Shukri explained that if Grab increases its fare as a result of their newfound monopoly, "we will consider taking legal action under the Competition Act 2010"
The Act prohibits the abuse of those in a "dominant position" in the market, that is when there are "no effective constraints from competitors or potential competitors".
Therefore, Grab would be prevented from manipulating the price of goods and services.
The minister was also told that the lay-off of Uber employees is only temporary, as all of Uber's 500 employees across Southeast Asia will be absorbed into Grab
Speaking to Malay Mail, she said that, "Uber employees are currently placed on paid leave for the next three months with medical benefits, as Grab finds new roles for them."
"We do not want anyone to take this opportunity to politicise this issue because the transition in the wake of this merger is not just happening in Malaysia, but throughout South-east Asia," she added.