Malaysia Threatens to Fine Grab as Antitrust Scrutiny Rises

(Bloomberg) -- Malaysia’s anti-monopoly watchdog proposed a fine on units of Grab Holdings Inc. for restricting drivers from showing its rivals’ ads, joining other Southeast Asian governments in turning up the heat on the ride-hailing giant.

The Malaysia Competition Commission could impose an 86.8 million ringgit ($21 million) fine against Grab Inc., GrabCar Sdn. and MyTeksi Sdn., it said in a statement Thursday. The regulator provisionally found that Grab prevented drivers from providing ad services for its peers during rides, distorting competition in the market.

The company said it was surprised by the proposed decision. “We believe that it is common practice for businesses to decide upon the availability and type of third-party advertising on their respective platforms,” a spokesman for Grab said in an emailed statement.

The commission said last month it was advancing an investigation it started in 2018, responding to multiple complaints accusing Grab of monopolistic practices after it bought Uber Technologies Inc.’s Southeast Asian operations. The regulator stepped up its activity as part of a broader push by Prime Minister Mahathir Mohamad, who wants to boost competition in the economy to lower costs for Malaysians and reduce wastage in state spending.

Regional Probes

“Grab’s conduct not only affects e-hailing drivers and competitors but also the consumers in the long run,” Iskandar Ismail, chief executive officer at the commission, said in the statement.

Grab has 30 working days upon receiving the proposed decision to plead its case to the commission, after which the regulator will make its final ruling. The startup also faces a daily penalty of 15,000 ringgit if it fails to take remedial actions. The company said it will submit its written representation by Nov. 27.

The company faces similar probes in other countries in the region, including Thailand, Vietnam and the Philippines. Singapore fined Uber and Grab S$13 million ($9.4 million) for antitrust violations last year.

To contact the reporter on this story: Anisah Shukry in Kuala Lumpur at ashukry2@bloomberg.net

To contact the editors responsible for this story: Edwin Chan at qo@bloomberg.net, Yudith Ho, Edwin Chan

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