Breaking News
0

Philippines sets rules for 'virtual monopolist' Grab after Uber deal

TechnologyAug 10, 2018 05:10AM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
© Reuters. A Grab employee uses the Apps to book a cab for passengers at the Ninoy Aquino International Airport (NAIA) in the metro Manila

MANILA (Reuters) - The Philippine competition watchdog said on Friday it has approved ride hail firm Grab's acquisition of Uber's operations, providing it follows rules to ensure fairness to consumers given its stranglehold of the local market.

The Philippine Competition Commission (PCC) would strictly monitor Grab's compliance with conditions intended to improve quality of service over the next 12 months, amid complaints about picky drivers and sharp prices increases at peak times.

Any breach of conditions could result in fines of up to 2 million pesos ($37,624) per offense and serious non-compliance could lead to the Grab-Uber deal being undone, it said.

"While Grab operates as a virtual monopolist, the commitments assure the public that quality and price levels that would prevail are those that had been when they still faced competition from Uber," PCC chairman Arsenio Balisacan told reporters.

Those include improving fare transparency, acceptance rates for bookings and faster response time to complaints, and re-evaluating drivers incentives.

Grab has a 93 percent share of the Philippines' ride-hailing market, up from 45 percent when Uber was active.

Grab would abide with its commitments to the regulator, its head, Brian Cu, told reporters.

It would work with the anti-trust agency in appointing an independent trustee to monitor its compliance, he added.

Uber sold its money-losing Southeast Asian business to bigger regional rival Grab in March in exchange for a stake in the Singapore-based firm.

It prompted Malaysia, Vietnam and Singapore to launch separate reviews on the deal.

Singapore's anti-monopoly watchdog last month proposed fines and suggested remedies on the ride hailing firms because the merger had reduced competition.

Several local ride hailing firms have started operations in the Philippines' capital and in major provinces since March, but have yet to make a dent on Grab's market share.

Philippines sets rules for 'virtual monopolist' Grab after Uber deal
 

Related Articles

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind: 

  • Enrich the conversation
  • Stay focused and on track. Only post material that’s relevant to the topic being discussed.
  • Be respectful. Even negative opinions can be framed positively and diplomatically.
  •  Use standard writing style. Include punctuation and upper and lower cases.
  • NOTE: Spam and/or promotional messages and links within a comment will be removed
  • Avoid profanity, slander or personal attacks directed at an author or another user.
  • Don’t Monopolize the Conversation. We appreciate passion and conviction, but we also believe strongly in giving everyone a chance to air their thoughts. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.
Continue with Google
or
Sign up with Email