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LTFRB suspends Uber for a month

The Land Transportation and Franchising Board (LTFRB) suspended for a month the accreditation of Transport Network Company (TNC) Uber System Inc.

"The Board meted out the penalty of one-month suspension on the accreditation of Uber System Inc. and ordered it to cease and desist its operation of the online booking application during the period of suspension," the LTFRB said in an advisory.

"The Board strongly recommended to respondent Uber to extend financial assistance to its affected peer-operators during the period of suspension as an expression of good faith," it added.

To recall, the LTFRB earlier this month threatened to cancel the accreditation of Uber, after the TNC supposedly defied an order halting the activation of new drivers.

"Upon the conduct of investigation by the board... it was found that respondent willfully and contumaciously violates the said directive contained in the order dated 26 July 2017, specifically, by continuing to accept additional accreditation of TNVS and/or activation of accounts," the board said in a show cause order dated August 1.

Uber earlier however maintains it stopped processing applications starting July 19, but the LTFRB is not buying that story.

"(T)heir accredited peer-operators would not have suffered their current predicament were it not for the predatory actions of respondent Uber," the LTFRB said.

For its part, Uber said it has received the order and is studying it at the moment.

"We will update our riders and drivers as soon as we can," it said in a short statement. —Jon Viktor Cabuenas/KBK/KVD, GMA News

Tags: uber, ltfrb