Malaysia has fair work practices and this is evident from a strict stance that the competition regulator took when it has fined the ride-hailing firm Grab over 86 million ringgit ($20.53 million) for violating some of the work practices.
Grab has been fined for imposing restrictive clauses on its drivers in Malaysia. Under Malaysia’s Competition Act, a monopoly or dominant player in the market is not an infringement of the law, unless it abuses its position in the market.
In the case of Grab, the infringement of the law has been proven. The Singapore based company is said to have abused its monopoly in the market, restricting drivers from entertaining any promotions for its competitors.
Last year, after Grab acquired the Uber Technologies Inc’s Southeast Asian business on March 2018, the Malaysian regulator (The Malaysia Competition Commission or MyCC) had expressed the intent of monitoring Grab for possible anti-competitive behavior. Currently, Malaysia is the country in the region to have penalized Grab after its deal with Uber.
Singapore and Philippine, both were against the way Grab and Uber were competing and they were fined by anti-trust watchdogs, for creating unnecessary raise in prices and slipping quality, after a sudden merger.
Unlike the West, South East Asian countries like to maintain a healthy competition without letting the costs come down to the customer. Confirming its stance, MyCC Chairman Iskandar Ismail told a news conference that,
“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,” The Singapore-based Grab has major backing from Japan’s SoftBank Group Corp.
Read more related articles about Malaysia News: https://www.malaysiajournal.com/news_type/news-and-features/
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