The Philippine Competition Commission said Dec. 18 that it fined GrabTaxi Holdings Pte. Ltd. about 16.2 million Philippine pesos for breaching its pricing and service quality commitments in the final quarter of the company's initial undertaking.
Grab was fined about 14.2 million pesos for overcharging passengers and an additional 2 million pesos for exceeding driver cancellations.
The development comes after the commission received the audit report submitted by the independent monitoring group tasked to review the ride-hailing company's compliance with its voluntary commitments on price, service quality and non-exclusivity for one year or until Aug. 10, 2019.
Singapore-based Grab was earlier fined 11.3 million pesos in the first quarter, 7.1 million pesos in the second quarter and 5.05 million pesos in the third quarter. Fines for the third and fourth quarters will be refunded via GrabPay credits to passengers who used the ride-hailing platform between May 11, 2019, and Aug. 10, 2019.
Grab said that it will respect the commission's decision and process the refund despite saying that its fares are compliant with the rules set by the country's Land Transportation Franchising and Regulatory Board, according to the Nikkei Asian Review. The company reportedly added that its pricing will "still be influenced by factors such as lack of supply, and the traffic situation."
Grab in 2018 acquired Uber Technologies Inc.'s Southeast Asian operations for an undisclosed sum.
As of Dec. 19, US$1 was equivalent to 50.65 Philippine pesos.