JAKARTA (TheInsiderStories) – Indonesia’s Business Competition Supervisory Commission said it will scrutinize Grab‘s business over prospects of monopoly after the Singapore-based technology company acquired acquired Uber’s Southeast Asia operations, including Indonesia.
“We recognize that the exit of Uber in Indonesia will [provide Grab a] virtual monopoly in the ride-hailing markets until the new players come into operation. We hope there will be competition, so we will monitor the progress,” Commissioner at the Commission Saidah Sakwan said in a statement on Monday (09/04).
However, Grab insists that the acquisition of Uber’s operational services in Southeast Asia does not create a monopoly on the transport business, but it will produce many things.
Managing Director of Grab Indonesia, Ridzki Kramadibrata, this corporate action will create the best technology platform that can be reached by the community.
In addition, this merger will occur efficiently from the operational side. “Producing qualified technology and affordable quality by the community,” Kramadibrata said in Jakarta on April 6, 2018.
The acquisition of Uber by Grab in Southeast Asia has become the focus of business competition commissions in various countries, including Vietnam, the Philippines, Malaysia and Singapore, as it makes Grab almost without competitors in Southeast Asia, except in Indonesia which has strong competitor Go-Jek.
Already felt uneasy, the Singapore business competition commission has requested Grab not to raise prices and keep rates current.
In Manila, The Philippine antitrust authority is examining a plan by ride-sharing rivals Grab and Uber after they integrating operations, saying the deal creates a “virtual monopoly.”
With Uber expected to fold under its rival ride-hailing firm Grab next week, the Philippine antitrust body has urged both companies to wait for a review before completing the deal that would give Grab a “virtual monopoly” in the market.