THE Philippine Competition Commission (PCC) said it has received both Grab Holdings, Inc.’s and Uber Systems, Inc.’s explanations for allegedly breaching one of its interim measures, while the regulator awaits the companies’ compliance report today which will be taken into account when it makes a ruling.
PCC Commissioner Johannes Benjamin R. Bernabe said both ride-hailing companies submitted before the April 17 deadline their explanations for their failure to comply with the PCC’s order that they keep the Uber app running pending the completion of the merger review.
“The primary reason really is they were also constrained to comply with the LTFRB [Land Transportation Franchising and Regulatory Board],” Mr. Bernabe said in a phone interview.
Uber advised its passengers last week of the termination of its operations in the country while endorsing the Grab app. Its action resulted from LTFRB’s directive that Uber cease operating as a Transport Network Company (TNC) by April 16.
In response, both Grab and Uber appealed that the LTFRB align its interim measures with that of the regulatory body.
“The parties are also asking for reconsideration of some of the interim measures because it will be difficult for them to comply given that they are already in the process of integrating,” Mr. Bernabe said.
“How compliance can be achieved with that, that’s what we are going to look at separately once we have the compliance report,” the official added.
Asked when the PCC will issue a decision on penalties due to the violation of the interim order, Mr. Bernabe said: “We will have to await their report on their compliance.”
The compliance report explains how the respondents plan to abide by the interim measures.
The interim measures imposed by the PCC include requiring both ride-hailing apps to operate independently pending the conclusion of the PCC review; refraining from sharing confidential information; and refraining from imposing exclusivity clauses, lock-in periods or termination fees on Uber drivers seeking to join Grab.
The PCC also directed Grab and Uber to take no further steps that will reduce viability and saleability of either company and from taking any actions that will prejudice the review.
If found non-compliant, both firms may be fined between P50,000 and P2 million daily for each interim measure violated until the review concludes. — Janina C. Lim

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