RM86.77 million fine against Grab by MyCC quashed by High Court

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The High Court has temporarily quashed a RM86.77 million fine by Malaysian Competition Commission (MyCC) against ride hailing and food delivery app Grab Holdings over the company’s anti-competitive practices according to Bernama.

In the report, ruling judge Wan Ahmad Farid Wan Salleh stated that the fine by MyCC was tainted by procedural impropriety and that the proposed fine did not have a proper investigation process to support it.

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MyCC’s proposed fine relied on 2018 complaints regarding Grab’s purported violation of the Competition Act 2010 through restrictive clauses imposed on its drivers. It noted that the court was unable to accept MyCC’s contention over the anti-competitive practices as mentioned by Judge Wan.

He issued a certiorari order that quashed the proposed fine and also ordered MyCC to pay RM20,000 to Grab as cost for the judicial review of Grab, Grabcar and Myteksi.

As the fine was by a public authority, the court added that it could be subject to legal challenges in judicial reviews.

Additionally, Grab was not granted a bid for damages against MyCC by the court that cited no element of bad faith behind MyCC’s decision for the fine.

Grab, Grabcar and Myteksi initially filed for the legal challenge against MyCC's fine against them in December 2019 but it was dismissed by the High Court in February 2020 as the proposed decision was yet to be finalised.

A+M has reached out for more information.

The news comes shortly after it was reported that Grab will be cutting 11% of its workforce or about 1,000 jobs as it looks to manage costs and ensure more affordable services long-term, according to a letter that was sent to employees and that was posted publicly on the company's website.

"I have difficult news to share today. We are letting over 1,000 Grabbers go," said Grab's group CEO, Anthony Tan. "We are informing you after office hours for as many of our locations as possible, so you have the space and time to process the news privately."

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