The country’s antitrust body, Philippine Competition Commission (PCC), on Wednesday has fined P16.15 million on Grab Philippines for overpricing and cancellation of customers’ rides.
The PCC said it penalized the ride-hailing company for not keeping up to its commitments from May to August.
Of the said amount, P14.15 million came from “extraordinary deviation on its pricing commitment” while P2 million was from the exceeding driver cancellations at 7.76% instead of 5%.
Grab said it would reimburse the P14.15 million to the GrabPay wallets of those who took rides from May 11 to August 10 sooner than February 10, 2020.
On the other hand, the company will pay the remaining P2 million fine directly to the PCC.
“The ride-hailing market has seen profound changes in the past year as a result of Grab’s acquisition of Uber. With the commitments in place, PCC aims to maintain pre-transaction market conditions and will discipline any tendency to exercise monopolistic power with corresponding penalties,” PCC Chair Arsenio Balisacan said.
Meanwhile, the PCC did not prohibit Grab’s acquisition of Uber after the former volunteered “commitments” to ensure fair market play. The penalties were based on noncompliance with the commitments.
In November, the company was also fined P23 million for overpricing and the PCC ordered it to refund P5.05 million to riders for overcharging trips.
Grab argued that it did not overcharge based on the matrix the Land Transportation Franchising and Regulatory Board (LTFRB) provided.
However, the PCC said Grab was bound by its voluntary commitments which are “separate and independent” from the LTFRB matrix.
Despite that, on October 31, the company signed a new set of voluntary commitments as “continuing condition” for the PCC’s clearance of its acquisition of former competitor Uber in 2018.