Grab, Uber ordered to pay P16M in fines

The country’s antitrust body fined Grab and Uber P16 million for allegedly causing undue difficulties that prejudiced the review of their controversial takeover deal.

Top officials of the Philippine Competition Commission (PCC) said on Wednesday the companies had made the review process unnecessarily difficult, despite clear orders against such actions.

Grab Philippines, now the largest transport network company in the country, would shoulder bulk of the fine. Uber would still be asked to pay despite having left the country.

The issue stems from a regional takeover deal earlier this year, wherein Grab acquired Uber’s operations here in Southeast Asia.

The PCC had flagged this, launching a review amid concerns the deal might come at the expense of the ride-hailing public.

“The fines are imposed for causing undue difficulties on the PCC review and decision making process,” said PCC Commissioner Stella Quimbo in a press briefing.

The review was later set aside after Grab committed to make certain changes in its operations, albeit the violations during the process have been underscored.

These promised changes, or the voluntary commitments, are currently being monitored. A violation could lead to more fines, and even an unwinding of the deal “in an extreme situation where there would be a blatant disregard” of the commitments, she said.

Broken down, both companies were collectively fined P4 million for failure to keep their businesses separate.

Grab, for its part, has been penalized to pay P8 million for failure to maintain premerger conditions such as pricing policies, rider promotions, driver incentives and service quality.

Uber, as the acquired party, was fined P4 million for the same set of violations.

In a statement, Grab Philippines public affairs head Leo Gonzales said: “We are currently studying all our legal options with regard to the fine imposed by the PCC. We will continue to provide additional information as it becomes available.”