Watchdog probes effects of Grab-Uber merger

Uber's deal with Grab sparks fears that the merged entity may be able to raise prices independently of market constraints and reduce quality and output, lawyers say.
Uber's deal with Grab sparks fears that the merged entity may be able to raise prices independently of market constraints and reduce quality and output, lawyers say.ST PHOTO: DESMOND FOO

It will see whether greater efficiency comes at expense of competition

Whether the merger of ride-hailing giants Grab and Uber will result in greater efficiency or substantially cut competition here is being evaluated by the Competition Commission of Singapore (CCS).

The competition watchdog told The Straits Times it began an investigation into the merger on Tuesday and both parties responded on Wednesday to its request to clarify details of the deal. Grab indicated the parties' intention to file a formal merger notification with the CCS but did not give a date.

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A version of this article appeared in the print edition of The Straits Times on March 30, 2018, with the headline 'Watchdog probes effects of Grab-Uber merger'. Print Edition | Subscribe