Malaysia's competition regulator today proposed a fine of more than RM86 million on ride-hailing firm Grab for violating the country's competition law by imposing restrictive clauses on its drivers.

Reuters today reported that the Malaysia Competition Commission (MyCC) ruled that Singapore-based Grab, which has major backing from Japan's SoftBank Group Corp, had abused its dominant position in the local market by preventing its drivers from promoting and providing advertising services for its competitors.

In response, Grab maintained that it fully complied with the Competition Act.

“We are surprised by the proposed decision that we received this morning.

“Whilst our legal counsels are now studying the proposed decision, we believe that it is 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,” a Grab spokesperson said in a separate statement.

The spokesperson added that Grab will be submitting its written representations to MyCC by Nov 27.