The Business Competition Supervisory Commission (KPPU) said it had found Grab had discriminated against its drivers, prioritising those provided by partner PT Teknologi Pengangkutan Indonesia (TPI) to the Softbank-backed firm.
In a statement, Dinni Melanie, the chair of the watchdog judicial panel, said it had found Grab infringed the anti-monopoly laws after evaluating the case on Thursday evening.
The agency imposed a fine of 30 billion rupiah (US$2.1 million) on Grab and a penalty of 19 billion (US$1.03 million) rupiah on TPI.
A spokesman for Grab, which is Southeast Asia’s most valuable startup with a valuation of US$14 billion, told Reuters the firm would appeal the verdict.
“Grab’s view is that it has not violated any regulation, engaged in any anti-competitive business practices, or injured any third parties,” he said, characterising the watchdog’s findings as “unsubstantiated allegations”.
Reuters could not immediately reach TPI to seek comment.