Wednesday, August 15, 2018
News

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

   SocialTwist Tell-a-Friend    Print this Page   COMMENT

MANILA | Friday, Aug 10 2018 IST
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 offence 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. REUTERS RHK PS 1518

-- (Reuters) -- C-1-1-DL0509-1472402.Xml

Loading...
 
  LATEST COMMENTS (0)
POST YOUR COMMENT
Comments Not Available
 
POST YOUR COMMENT
 
TRENDING TOPICS
 
 
 
CITY NEWS
MORE CITIES
 
MORE WORLD NEWS
S.Korea's Moon says he hopes for progres...
25 killed, 35 injured in suicide attack ...
German, Turkish ministers to meet before...
Autostrade execs resist calls to quit ov...
300 priests accused of abusing thousands...
Pentagon spokeswoman under probe for ret...
More...
 
INDIA WORLD ASIA
Shutdown in Kashmir valley...
Tripura CM reiterates his pledge to make...
Bengal celebrates 72nd anniversary of In...
China finance ministry sets minimum loca...
Modi says women officers to get permanen...
KCR seeks fresh mandate for 'golden Tela...
More...    
 
 Top Stories
Gutka worth Rs 11.56 seized in Than... 
I-Day celebrated by Bhiwandi sex wo... 
Dozens killed in Afghanistan attack... 
New fuel rules push shipowners to g... 
Britain's RBS adds dividend appeal,... 
ECR rain services cancelled, short ... 
Yogi orders arrest of murderers of ... 
PM speaks to Kerala CM on floods, D...