SINGAPORE (Mar 30): Singapore's competition watchdog said it had reasonable grounds to suspect competition had been infringed by Uber Technologies Inc's deal to sell its operations in Southeast Asia to rival ride-hailing firm Grab.
See: Grab confirms acquisition of Uber's Southeast Asia operations; Uber CEO Khosrowshahi to join Grab's board
In a rare move, the Competition Commission of Singapore (CCS) has begun an investigation into the deal and proposed interim measures that will require Uber and Grab to maintain their pre-transaction independent pricing, the watchdog said in a statement on Friday.
The proposal also requires Uber and Grab not to take any action that might lead to the integration of their businesses in Singapore, a move likely to pose a major hurdle to the US company's attempt to improve profitability by exiting the loss-making Southeast Asian market.
It is the first time the commission has issued interim measures on any business in the country.
"To address consumer concerns, we have voluntarily committed to maintaining our fare structure and will not increase base fares. This is a commitment we are prepared to give the CCS, and to the public," Lim Kell Jay, head of Grab Singapore, told Reuters in a statement.
