SINGAPORE - Singapore's anti-trust body proposed fines on Grab and Uber Technologies and warned it may have to unwind the two ride-hailing firms' merger as the deal substantially lessened competition.
Uber sold its Southeast Asian business to bigger regional rival Grab in March in exchange for a stake in the Singapore-based firm, marking the US firm's second-biggest retreat from an Asian market.
But the deal has invited regulatory scrutiny in the region, with the Competition and Consumer Commission of Singapore (CCCS), in a rare move, launching a probe into the deal, days after the transaction was announced.
The commission said on Thursday it proposed the fines because Uber and Grab carried out the transaction despite having anticipated potential competition concerns, leading to lesser competition in the sector in Singapore.
This is the first time the commission will impose fines on a merger transaction. The CCCS said it will consider the companies' representations before it finalizes the actual amount of fines.