Grab Philippines will ask the Philippine Competition Commission (PCC) to reconsider its decision of imposing Php 12 million fine on Grab.
In its decision, PCC said Grab is being fined Php 8 million for failure to keep pre-transaction incentives, promos, pricing, and quality of service; and, solidarily with Uber, Php 4 million for failure to keep operations separate, and failure to suspend assumption of board seat in Grab.
We respectfully disagree with PCC’s decision. Grab completed the transaction legally, and did not violate the interim measures order.
During the review of the deal, we worked closely with the PCC and explained the following market conditions that affected the interim measures:
– Grab’s price algorithm, until the LTFRB suspended the time component in its fares, remained the same. The supposed increase in price was affected by the higher incidence of surge, which was driven by the low supply of vehicles and high concentration of demand. Fare and surge rates remained within the LTFRB-approved range. Promos and incentives were also maintained but pivoted towards ka-Grab rewards program to address the issues related to considerable imbalance between supply and demand.
– In terms of Uber’s equity stake and board seat, we maintain that the deal was already consummated before the issuance of the interim measures order. The interim measures, as worded, should be interpreted to apply prospectively and should not cover acts already consummated before its issuance.
– Grab and Uber operations in the Philippines remained separate and without any integration nor was there automatic transfer of passenger and drivers data. Grab did not take over Uber operations and did not do anything to violate the interim measures after it was put into effect.
PCC, despite Grab’s filing of motion for reconsideration, can be assured that Grab will abide by and remain faithful to its voluntary commitments. We have been closely coordinating with both the PCC and the monitoring trustee to ensure that high service standards met.
Atty. Miguel Aguila
Grab Philippines Lead Legal Counsel