MyCC not fair in penalising Grab, says Umno Youth

(Facebook pic)

PETALING JAYA: Umno Youth, criticising the RM86 million proposed fine on Grab Car Sdn Bhd, says the penalty was unfair to the company and will scare away foreign investors.

The movement’s strategic director, Wan Agyl Wan Hassan, questioned the real reason behind the hefty fine imposed by the Malaysian Competition Commission, which said the dominant e-hailing company had breached anti-monopoly laws after its merger with Uber.

“A fine like this, without detailed explanation, will only create a negative perception of Malaysia among foreign investors,” said Wan Agyl, adding that MyCC had no authority on the merger.

Grab is also being slapped with a daily fine of RM15,000 from today.

“From what I see, MyCC is justifying its proposal as Grab forbids its drivers from advertising or promoting its competitors.

“As long as they are operating under the Grab platform, it is understandable that they will refuse to allow any other kind of advertisement or promotion,” he said, adding that Grab was already facing many legal requirements.

Wan Agyl Wan Hassan.

The transport ministry already requires Grab to pay millions in licensing and public service licensing costs. To be slapped with a whopping RM86 million will definitely not improve the situation, he added.

Grab said it had complied with the Competition Act 2010 and was surprised with MyCC’s decision, which is now being scrutinised by company lawyers.

“We maintain our position. It’s common practice for businesses to decide upon the availability and type of third-party advertising on their respective platforms, tailored according to consumers’ needs and feedback,” said a company spokesman in a statement today.

Grab will submit a written representation to the commission by Nov 27.