CCCS monitors Grab and Uber's compliance with competition measures

Smith & Williamson LLP serves as the independent monitor, which was recommended by the two firms.

The Competition and Consumer Commission of Singapore (CCCS) approved the appointment of Smith & Williamson LLP as the independent monitor of Uber and Grab's compliance with the watchdog's interim measures directions (IMD) after their proposed acquisition deal.

It was previously announced that Grab has bought the Southeast Asian business of Uber, prompting its exit in the region and the ownership of a 27.5% stake in Grab.

The commission updated that investigations into the transaction are still ongoing. "In the event CCCS makes a finding that the transaction has resulted in a substantial lessening of competition and infringes section 54 of the Competition Act, CCCS may impose such appropriate directions (or accept such appropriate commitments from the parties) to remedy, mitigate or eliminate any adverse effects of such an infringement," it said.

Smith & Williamson LLP is tasked to monitor Grab's prices and product options for drivers and riders and make sure they are retained at the pre-merger levels. 

Under the IMD, Grab must also not subject new drivers to exclusivity, lock-in periods, and termination fees, and that it must communicate to drivers who rent a vehicle from Lion City Rentals (LCR) that they are free to drive for any ride-hailing platform and must not be penalised for it.

Grab is also required to kill off its exclusivity arrangements with all taxi fleets in Singapore, provided that "(a) there are no exclusivity arrangements in Singapore between any taxi fleets and any third-party ride-hailing platform other than Grab, and (b) that all taxi operators permit their respective taxi drivers to drive for any third party ride-hailing platform for metered and fixed fare jobs," CCCS said.

Grab is also banned from taking over Uber's operational data to enhance its market position. "Grab may, however, receive personal data of drivers, riders and merchants (e.g. names, contact details, and supporting documents for vocation licence applications) who have expressly opted in and moved to the Grab platform," the watchdog said.

CCCS noted that after the transaction was completed on 25 March 2018, Uber and Grab have immediately begun transferring their assets.

The IMD required the Uber ride-hailing platform in Singapore to be extended until 7 May 2018 to allow for a smoother transition for riders and drivers. "Uber is not obliged to extend the app beyond this date," CCCS said.

CCCS encouraged the public to report possible non-compliance by the parties with the IMD terms and more generally on the transaction.

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