The Competition Commission of Singapore has launched an investigation into GrabTaxi Holdings Pte. Ltd.'s acquisition of Uber Technologies Inc.'s Southeast Asian operations.
The competition watchdog initiated the probe after suspecting that section 54 of the Competition Act was infringed by the transaction due to a substantial lessening of competition in relation to the chauffeured personal point-to-point transport passenger and booking services, or CPPT services, market in Singapore, according to a March 30 news release.
The regulator also proposed interim measures for the companies that will require them to maintain their pre-transaction independent pricing, pricing policies and product options in relation to the CPPT services, and not take any action that could result in the integration of the parties' businesses in Singapore, among other things.
The deal will see Grab taking over Uber's operations and assets in Cambodia, Indonesia, Malaysia, Myanmar, the Philippines, Singapore, Thailand and Vietnam. Meanwhile, Uber will own a 27.5% stake in Grab. Uber CEO Dara Khosrowshahi will also join Grab's board.