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PCC slaps PHP 23 million fine on Grab Philippines

The Philippine Competition Commission (PCC) punished ride-hailing firm Grab Philippines with PHP 23.45 million as the latter failed to keep its pricing commitments. 
PCC orders Grab to refund PHP 5M to customers for "overcharging"
PCC slaps Grab with PHP 23 million penalty

Grab Philippines to pay PHP 23 million

According to the antitrust body, the fines cover PHP 11.3 million in penalties for January to March, PHP 7.1 million and P5.05 million for the second and third quarters, respectively.

The PCC has resolved to impose a total fine of PHP 23.45 million on Grab for breaching its pricing commitments during the first to third quarters of the initial undertaking, it said. 

Some of the non-exclusivity commitments Grab did not follow were: Non-exclusivity guarantee to not impose or introduce any agreement, policy, or incentive that would result in exclusive membership or registration by drivers or operators in Grab; incentives monitoring to ensure incentives, benefits, promotions, or rewards for its drivers or operators do not result in exclusivity to Grab; assistance commitment to provide licensing and regulatory support, including the return of documents to divers and operators when operating under competitors. 

PCC has also been monitoring Grab's service quality, demanding the company to meet an average completion rate of not less than 65 percent of trips every month for the first three months of 2019, and 70 percent for the remaining quarters. 

Grab Philippines should also ditch the "See Destination" feature for drivers. 

Aside from the PHP 23 million, Grab Philippines must also shell out PHP 5 million for overcharging. 

The firm, in a separate statement, said it would release PHP 5 million to settle the matter, and vowed to cooperate with the PCC regarding the issues. 

We respect the PCC and its mandate to protect the consumers in the Philippines and create a healthy competitive environment. Grab Philippines has worked closely with the PCC to form and finalize these voluntary commitments, Grab Philippines said. 

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