MANILA - The shutdown of ride-hailing service is a "clear breach" of the Philippine Competition Commission's order asking the company and erstwhile rival Grab to operate separately until a review of their merger is completed, the regulator said Tuesday.
Uber, which sold its Southeast Asia operations to Grab, shut down its mobile app last Monday. The PCC and counterpart bodies in Singapore and Malaysia are investigating the deal for possible violation of antitrust laws.
"Clearly when Uber shut down operations last week, they are in breach of one of the most important interim measures, which is to continue operations," PCC Commissioner Stela Luz Quimbo told ANC.
The competition watchdog wants to find out why a "transition" arrangement in Singapore allowed Uber to continue operating there and why the same can't be done in the Philippines, she said.
The PCC gave Uber and Grab until Tuesday to explain the app shutdown. It can impose fines from P50,000 to P2 million per day on both parties if their explanation is insufficient, Quimbo said.
The Land Transportation Franchising and Regulatory Board (LTFRB) earlier ordered Uber to cease operations from April 16.