THE Philippine Competition Commission (PCC) said allocating a portion of the total transport network vehicle service (TNVS) supply to new entrants will give them leverage against the market dominance of Grab Holdings, Inc.
In a phone interview last week, PCC Commissioner Johannes Benjamin R. Bernabe said the body supports the Land Transportation Franchising and Regulatory Board’s (LTFRB) multi-home policy which allows drivers of ride-sharing platforms to be affiliated with other transport network companies (TNCs).
However, he said this may not be enough to level the playing field with Grab’s dominant position resulting from its ”first-mover advantage.”
As such, Mr. Bernabe said “it is correct to reserve a part of the total supply of the TNVS to these new incoming TNCs so not all of them end up affiliated Grab.”
He noted that Grab, upon the acquisition of Uber Technologies’ Southeast Asian operations, is expecting to take in about 55,000 or 85% of the current 65,000 units or drivers of TNVS.
Mr. Bernabe is proposing that the LTFRB allocate the remaining 10,000 vehicles to new entrants.
He added that the PCC is currently focused on finishing the motu proprio review which will look into the behavior of prices and the quality of services, among other anti-competitive issues seen to arise post-acquisition of Uber.
The PCC may reject or approve the deal. It may also clear the deal but subject to conditions that parties need to comply with to keep competition robust.
The PCC has said that in previous reviews, most companies offer voluntary commitments. Mr. Bernabe noted that the PCC has not received any from Grab and Uber.
The anti-trust body is looking at finishing the review by the end of the month or mid-June.
The PCC also has yet to decide on the companies’ compliance with the agency’s interim measures. Both have filed a motion for the PCC to reconsider its terms, among which is the order that they suspend plans for Uber to exit the market.
Uber said there are difficulties in complying with the PCC measures, citing the LTFRB’s order that it cease operations and that as a local unit, the company is constrained by the decision of its international parent firm.
Mr. Bernabe said the PCC has yet to decide whether the measures will be revised.
For each interim measure violated, companies risk a fine of P50,000 to P2 million per day until the end of the review. — Janina C. Lim
