SINGAPORE: The Competition and Consumer Commission of Singapore (CCCS) announced on Wednesday that it has not received any notification from ride-hailing and delivery giants Grab and GoTo regarding their proposed merger. This announcement comes amidst increasing speculation and media reports about potential consolidation between the two well-known apps.

The CCCS has acknowledged awareness of media discussions regarding the merger but emphasized that both parties should seek legal counsel to ensure their plans comply with Singapore's competition laws. In a statement shared with Reuters, the commission noted, “CCCS is open to engaging with the parties via our merger notification and pre-notification discussion processes.”

Grab, headquartered in Singapore and backed by Uber, and its Indonesian rival GoTo, have reportedly been involved in extensive discussions about a merger. However, GoTo clarified on Wednesday that no agreement has been reached, following a Bloomberg report suggesting that Grab had commenced due diligence procedures to explore a takeover of GoTo.

If this merger goes through, Grab and GoTo would dominate the ride-hailing market in Singapore and Indonesia, commanding nearly 90% and over 91% market share respectively, as per Euromonitor International data. Such a substantial concentration of market power has sparked concerns over reduced competition and consumer choice in these regions.

The CCCS previously penalized Grab and Uber a staggering S$13 million (US$9.76 million) in 2018 after Grab neglected to notify the commission of its merger with Uber, a move that significantly diminished competition in the Singapore market. This historical context underscores the importance of adhering to competition regulations, especially considering that the CCCS can impose hefty penalties—up to 10% of a company’s annual turnover in Singapore—for any violations, covering a maximum of three years.

Moreover, the commission holds the authority to implement measures to remedy any negative impacts from a merger, including the possibility of unwinding the merger if deemed necessary to sustain a competitive market environment.

As for the companies involved, Grab declined to comment on the swirling rumors, while GoTo echoed that it would refrain from further comments beyond its recent stock exchange disclosure.

The news appears to have impacted investor sentiments, with GoTo's shares falling by 2.4% in Indonesia, contrasting with a 1.5% rise in the overall domestic benchmark stock index. As this developing situation unfolds, stakeholders are keenly monitoring the implications for consumers and the regulatory landscape in the region.

Stay tuned for more updates as this potential merger evolves and the CCCS's stance becomes clearer!