The Philippines Competition Commission (PCC) has just given the transport network vehicle service (TNVS) company Grab Philippines a new PHP 9 million fine after it failed to reimburse its customers after it was ordered over three years ago.
Grab Philippines – Fines
In 2019, Grab was ordered to refund PHP 5.05 million for overcharges and an additional PHP 14.15 million for violation of voluntary commitments. It was then asked to refund PHP 6.25 million in 2020 due to pricing issues.
Last year, the PCC gave the TNVS company a month to release around PHP 19.3 million worth of refunds. This was after the commission found out that less than a fourth of the total amount for refund was claimed by passengers and the commission.
There was another PHP 3 million fine to the TNVS provider after “incorrect and misleading information” in compliance reports submitted wherein it said that the refunds were completed.
“It was only after the PCC issued a show-cause order in January 2022 when compliance to the refund order shot up to 73.80% as of April last year, but still short of the full refund that Grab had claimed,” the PCC said in a statement.
As of writing this, Grab Philippines has yet to release a statement regarding the latest fine from the PCC.
Update as of May 16, 2023, 1:35 PM:
Grab Philippines released a statement saying:
“We are glad that the PCC has finally come to a decision on the disbursement mechanism for the remaining administrative fees – so we can put this matter to rest. At the same time, we are surprised at PCC’s decision to fine us – given that we’ve been proactively engaging with them for over a year with proposals for alternative mechanisms to disburse the remaining administrative fees.
Grab Philippines has always been 100% committed to fully depleting the unclaimed admin fees, and have made every effort we can to do so. We proposed alternative disbursement mechanisms and are surprised that the PCC made a decision in February 2023 without informing us – given that we’ve been regularly following up with them. Nevertheless, we will implement the order of the PCC for Alternative Refund Mechanism as required by the PCC Order.
As we have been forthcoming in explaining our legal position, and challenges to the PCC; and have been proactive in proposing alternative disbursement mechanisms, we will be evaluating our legal options regarding the PhP 9M fine.”
Ram found his love and appreciation for writing in 2015 having started in the gaming and esports sphere for GG Network. He would then transition to focus more on the world of tech which has also began his journey into learning more about this world. That said though, he still has the mentality of "as long as it works" for his personal gadgets.
