MyCC to keep tabs on impact of Uber-Grab merger

KUALA LUMPUR: THE Malaysia Competition Commission (MyCC) has no authority over the merger of ride railing firms Grab and Uber, but vowed to keep its eye on the impact of the merger to ensure that there is no abuse of dominant position and price fixing.

Speaking at a press conference after a forum titled “Strengthening Competition Through Market Review” yesterday, MyCC member Dr Saadiah Mohamad said an assessment on the merger is being undertaken to safeguard public interest.

“The merger is not under our jurisdiction. But we take note of this because it involves the public interest. We have had discussions with Grab, we’re monitoring the whole process,” she noted.

Last month, Uber announced the disposal of its Southeast Asian business to Grab.

Saadiah highlighted that the commission is monitoring closely any issues of pricing and anti-competitive behaviour arising from the merger.

Under the Section 10 of the Competition Act 2010, an enterprise is prohibited from engaging, whether independently or collectively, in any conduct which amounts to an abuse of a dominant position in any market for goods or services.

Meanwhile, the Section 4 (1) of the Competition Act 2010 states that a horizontal or vertical agreement between enterprises is prohibited insofar as the agreement has the object or effect of significantly preventing, restricting or distorting competition in any market for goods or services.

On a separate note, MyCC said the outcome for its dispute with the General Insurance Association of Malaysia (PIAM) over insurance claim payments for motor repairs is still pending.

“We’ll issue a proposed decision soon, hopefully within this year. It involves a lot of issues.”

In February 2017, MyCC announced that a proposed decision to impose a RM213.45 million fine on PIAM and its members due to the agreement between PIAM and the Federation of Automobile Workshop Owners’ Association of Malaysia for fixed trade discount rates for parts of certain vehicle makes, and labour hourly rates for workshops under the PIAM Approved Repairers Scheme.

Both PIAM and Bank Negara Malaysia (BNM) had said the agreement was reached on the central bank’s directive to resolve significant consumer complaints regarding repair times in the motor insurance industry. BNM had also weighed in on MyCC’s proposed decision, stating that it would severely impact consumers’ interests.