Antitrust watchdog the Philippine Competition Commission (PCC) fined Singaporean ride-hailing giant Grab on Monday due to overcharging passengers, resulting in a breach of the country's ride-hailing policies.
According to the South China Morning Post, Grab was slapped with a hefty fine of 23.45 million pesos or $461,870 for violating its pricing commitments in its first year of acquiring operations from Uber.
The Philippine watchdog noted in a statement that the fines were equivalent to violations made "during the first to third quarters of the initial undertaking." Under the PCC's watch, Grab will see part of the fines go back to riders for commissions.
Chairman of the PCC, Arsenio Balisacan, said the antitrust agency will continue to watch Grab's compliance measures closely, especially now that it has left a bad taste in the commission's records.
In response to the fines, Grab said in a statement that the company "maintains its compliance" with the country's Land Transportation Fare Regulatory Board (LTFRB). The ride-hailing firm also said it will work with the PCC to implement the payment scheme initially agreed on.
The merger between Uber and Grab was completed in March 2018, after the former stopped operations in the Philippines. The Singaporean company remains a dominant force in the country ever since its acquisition of Uber's operations.
So far, there are no competitors that challenged Grab's dominance in the country. Other smaller rivals only offer motorbike rides, but to date, Singapore's ride-hailing crown jewel remains the first choice for many Filipino commuters.
However, Grab's sole authority in the Philippines' ride-hailing market could be challenged soon by China's DiDi Chuxing. Earlier this month, the local Philippine news outlet The Inquirer reported that DiDi is in talks with U-Hop Transportation Network Vehicle System Inc. (U-Hop) to hopefully get a chunk of the country's ride-hailing market.
According to the outlet, Luis "Chavit" Singson, owner of U-Hop, revealed that negotiations were underway with the goal of breaking "the monopoly of Grab." However, a representative for DiDi said there were no plans to expand to the Philippines at the moment.
It is unclear whether Singson's comments came too early or there really are no talks for DiDi Chuxing to set up shop in the country. If the expansion happens, though, industry experts believe Grab would feel the heat.
It is worth noting that DiDi is an investor in Grab. However, the Chinese ride-hailing company also acquired Uber China. A partnership with U-Hop in the Philippines is expected to rock Grab's dominance and force the Singaporean country to upgrade its services.
