Govt says may take legal action if Grab increases fares

A man is seen at Uber’s Bangsar South office March 27, 2018. ― Picture by Azneal Ishak
A man is seen at Uber’s Bangsar South office March 27, 2018. ― Picture by Azneal Ishak

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PETALING JAYA, March 27 ― The government will consider taking legal action against ride-hailing platform Grab if they decide to increase ride fares following the merger with Uber yesterday.

In a statement to Malay Mail, Minister in the Prime Minister Department Datuk Seri Nancy Shukri said the government can take action against Grab if it raises its fares, following the merger of Grab and Uber in South-east Asia.

“I had a meeting with Grab yesterday and they have given their assurance that the transfer of shares will not affect the fare.

“In such event, we will consider taking legal action under the Competition Act 2010 which prevents monopolistic position and pacts by large enterprises in manipulating the price of goods and services,’’ she said.

As a result of the merger, Uber employees that are sacked would eventually be re-hired by Grab, said Nancy.  

“On the allegation that Uber employees are adversely affected by the merger, I was informed that their temporary lay-off is in place to allow Grab to formally re-employ suitable positions to the affected Uber employees.

“Uber employees are currently placed on paid leave for the next three months with medical benefits, as Grab finds new roles for them,’’ she said while adding that there are 80 Uber employees in the country.

“We do not want anyone to take this opportunity to politicise this issue because the transition in the wake of this merger is not just happening in Malaysia, but throughout South-east Asia,’’ Nancy added.

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