A REPORT submitted to the Malaysia Competition Commission (MyCC) has raised alarm over alleged anti-competitive practices by Grab Holdings Inc in Malaysia’s rapidly growing food delivery sector.
According to the report, Grab has been imposing exclusivity clauses on its so-called Signature Merchants which effectively prevent them from listing their outlets on rival platforms such as Foodpanda or ShopeeFood.
As a result, several well-known brands including Subway, Baskin Robbins, Super Kitchen Chilli PanMee, KyoChon, Sangkaya and Nasi Lemak Burung Hantu are now only available through Grab.
Legal and competition concerns
The report highlighted that such exclusivity arrangements could fall foul of Malaysia’s Competition Act 2010. Section 4 of the Act prohibits agreements that have the effect of restricting competition while Section 10 makes it illegal for a dominant company to abuse its market position.
By locking popular merchants into exclusive deals, Grab may be both restricting rival platforms from accessing the market and limiting the choices available to consumers.
Disclosed in the report, the form contains a clause preventing merchants from partnering with rival delivery platforms without Grab’s written consent.
Consumer impact
The impact on consumers is described as significant, ranging from reduced promotions to diminished convenience and fewer choices.
For example, consumers who once ordered Subway via FoodPanda and ShopeeFood now have no option but to use Grab which means losing access to promotions previously available on rival platforms.
When competition decreases, there is a likelihood that service quality, including delivery times and customer care will be affected.
Subway is now listed exclusively as a Signature Merchant on Grab. Screenshots show availability on Foodpanda and ShopeeFood in 2024, and on Grab in August 2025.
Subway is highlighted as one example of how consumers who once ordered via FoodPanda and ShopeeFood are now forced to use Grab, reducing the options available across platforms.
Evidence provided in the report includes screenshots of signature merchants once available on rival platforms but now absent as well as contractual forms showing clauses restricting merchants from partnering with other delivery apps without Grab’s consent.
The submission urged MyCC to commence a formal investigation into Grab’s exclusivity clauses, obtain copies of contracts with signature merchants and enforce corrective measures if breaches are confirmed.
The report further warned that unchecked exclusivity could entrench “monopoly-like control” in Malaysia’s food delivery sector, hence undermining competition and harming consumers.
“The practice risks raising costs, reducing choice and weakening innovation in the sector,” the report concluded, calling on regulators to act decisively. – Aug 19, 2025
