Grab cites LTFRB cease and desist order in explaining Uber app shutdown

A government cease and desist order has prompted Grab Philippines to shut down Uber app even amid the ongoing Philippine Competition Commission (PCC) review on the acquisition deal between the two ride-hailing firms.

The order was issued by the Land Transportation Franchising and Regulatory Board (LTFRB), said Grab legal counsel Miguel Aguila in a press briefing on Wednesday.

"Ang basehan po namin talaga ay ang pag-issue ng LTFRB ng cease and desist order on April 11. It prohibits us from continuing to fund the Uber application," Aguila said.

The PCC has ordered Grab to explain the shutdown of the Uber app after it ordered Uber to continue operating its app for the duration of the commission's motu proprio review.

The LTFRB came up with the cease and desist order after the PCC order.

To comply with the PCC order, Grab Philippines funded the cost of keeping the Uber app active from April 8 to 15.

However, Aguilar said they fear that non-compliance with LTFRB's order will expose them to fines or imprisonment.

"Kasi po 'pag refund namin, puwede po kami ma-cite in indirect contempt. Puwede po kaming ma-file or worse, imprisonment. So nirerespeto din namin ang regulatory body that governs our industry which is the LTFRB," Aguila added.

With the conflicting orders of the two bodies, Grab Philippines said it hopes the PCC would understand their position and continue the fair assessment of the acquisition.

The PCC on its own started a review regarding to the implications Grab's acquisition of its rival Uber on commuters.

It said Uber, which exited the market due to financial incapacity, could still continue its operations while the agency was conducting the review. —KBK, GMA News