Grab PH, Uber slapped with PHP 16 million fine over merger deal
The Philippine Competition Commission (PCC) is demanding PHP 16 million from Grab Philippines and Uber following their failure to meet merger provisions.
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| Grab, Uber face PHP 16 million fine |
Grab has to pay a penalty of PHP 12 million for alleged poor customer service after it acquired Uber, shutting down the latter's operation in the Philippines.
Uber was also fined PHP 4 million for causing "undue difficulties" to the review, the country's antitrust authority said.
Uber was also fined PHP 4 million for causing "undue difficulties" to the review, the country's antitrust authority said.
If you want to exit the market, you can sell of course. But don't do it right away. In this situation, when Grab purchased Uber, Uber already exited. We would have a more difficult time imposing the possible solution. That's why we said come back first, PCC Commissioner Stella Luz Quimbo said.
PCC released in April interim measures for both companies, where the agency recorded Grab and Uber violate two measures, with 10 counts.
The antitrust watchdog has the power to enforce sanctions or penalties of up to PHP2 million per violation, leading to the PHP16 million fine.
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| Grab |
Grab Philippines public affairs head Leo Gonzales said the company was already "studying all legal options" regarding the decision and would "provide additional information as it becomes available."
Two months ago, the PCC approved the Grab-Uber merger, but mandated Grab to still serve the ride-haling market with as if Uber were still present.
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