Over the past couple of days, e-hailing company Grab received a RM86.7mil fine from the Malaysia Competition Commission (MyCC) for violating competition laws here.
The fine was issued because the company has breached Section 10 of the Competition Act 2010, as reported by The Star.
However, this fine is just at a proposal stage and it is not final.
According to MyCC chief executive officer Iskandar Ismail, Grab restricted its drivers by imposing clauses that disallowed them from promoting the company's competitors in the market.
"MyCC further notes that the restrictive clauses had the effect of distorting competition in the relevant market that is premised on multi-sided platforms by creating barriers to entry and expansion for Grab’s existing and future competitors," he said.
Besides that, the commissio is also looking into a daily penalty of RM15,000 on the company if it does not take any remedial action,
Grab now has 30 working days to speak to the commission and present their defence before a final decision on the proposed fine is made.
Since the news broke, the e-hailing company has also released a statement, as reported by The Star, saying that "it is common practice for businesses to decide upon the availability and type of third-party advertising on their respective platforms, tailored according to consumers’ needs and feedback".
So they were surprised with this statement from the commission.
Regardless of the type of business, we trust that it is better in the long run to have fair and conducive competition between companies.
Who wants to eat from the same pot 24 hours a day, 365 days a year, right?
So this may turn out to be a good thing. What are your thoughts on Grab's presence in Malaysia?