LTFRB to review Grab’s fare structure
by Alexandria Dennise San JuanFollowing the P23-million fine imposed by the Philippine Competition Commission (PCC) against Grab Philippines, transport regulators will review the ride-sharing firm’s fare setting scheme to determine any violation on existing agency policies.
The Land Transportation Franchising and Regulatory Board (LTFRB) also clarified that the antitrust body’s fines against Grab were not related with any regulatory violations.
“To put it in proper context, the fine issued by PCC in its decision recently rendered pertains to the failure of Grab to fulfill its commitment to PCC as embodied in Grab’s undertaking which it voluntarily submitted to PCC. It has nothing to do with LTFRB’s fare structure,” board member Ronaldo Corpuz said.
The LTFRB’s explanation came after its meeting with the PCC early this week in connection with the penalties imposed against the transport network company.
However, the agency added that it will conduct a review to monitor Grab’s fare setting in order to determine any violation on the existing fare structure issued by the Board.
Grab Philippines President Brian Cu welcomed the LTFRB’s move and assured that the firm’s fare structure is still compliant with the requirement of the regulatory body.
“We respect and welcome the LTFRB’s intent to conduct a review to monitor our fare setting. Grab continues to work with our regulators, and we maintain our position that our fares remain to be compliant with the LTFRB’s fare matrix,” Cu stated.
The PCC earlier slapped Grab with a total of P23.45 million fine for “breaching its pricing commitments during the first to third quarters of the initial undertaking.”
According to PCC, the fine covers P11.3 million in penalties during the first quarter, P7.1 million for the second quarter, and P5.05 million for the third quarter.
It also ordered Grab to refund P5 million to its passengers which the ride-hailing company has committed to return.
Grab also assured the public that it will work closely with the PCC and the LTFRB, and will be paying the corresponding penalties.