Antitrust body fines Grab P23M, orders P5-M refund to riders

MANILA, Philippines — The Philippines Competition Commission (PCC) has slapped Grab Philippines with a P23-million fine and also ordered the ride-hailing company to refund P5 million to its passengers, citing breach in its pricing commitments.

“The PCC has imposed a total fine of P23.45 million on Grab for breaching its pricing commitments during the 1st to 3rd quarters of the initial undertaking,” PCC Chair Arsenio Balisacan said Monday.

Balisacan said the fine covers P11.3 million in penalties during the first quarter, P7.1 million for the second quarter, and P5.05 million for the third quarter.

“To kick off the refund system, the disgorgement mechanism shall be applied on the third quarter fine, with Grab being ordered to refund P5.05 million to affected riders,” Balisacan said.

INQUIRER.net has sought for Grab Philippines’ comment about the PCC’s order, but it has yet to reply as of this writing.

Earlier this year, Grab was also fined P6.5 million with PCC citing inconsistencies in Grab’s data about its pricing.

READ: PCC fines Grab P6.5M for incorrect pricing data

New Commitments

PCC said it has also approved a new set of commitments to be undertaken by the ride-hailing company.

Balisacan said drivers now have the choice to operate with any transport network companies (TNCs) and will not be tied to Grab “by way of any agreement, policy or incentive.”

Grab, Balisacan said, must also improve passenger experience by setting standards for completion rates of drivers.

For transparency, Balisacan said the company must also put in place a system-wide average fare cap to limit Grab’s ability “to unreasonably increase fares beyond pre-transaction levels.”

“While Grab’s commitments signal its willingness to behave within a competitive space and in accordance with the competition law, the PCC will keep a watchful eye on potential violations,” Balisacan said. / KGA