Grab’s appeal against MyCC RM86.77m fine successful

The Kuala Lumpur High Court’s decision that quashed the proposed fine of RM86.77 million imposed by the Malaysia Competition Commission (MyCC) on Grab and its subsidiaries in 2019 has been upheld by the Court of Appeal (COA). A three-member panel led by judge Datuk ES Nantha Balan also ordered MyCC to pay RM50,000 costs to Grab.

Judge Datuk Dr Lim Chong Fong, who read the unanimous decision on Wednesday, said COA found that MyCC may have been ‘cavalier’ when conducting the investigations on Grab, which the court found there had been procedural impropriety and warranted the judicial review, The Edge reported.

Lim said there should have been prior notification to the respondent (Grab) for request of information based on Section 18 of the Competitions Act 2010, as the investigation must be predicated by a third-party complaint. He added that the investigation had deprived the respondents of knowing the details of the complaint. COA had also found the letter issued by MyCC to Grab to be ambiguous.

“This court also found Section 35 of the Competitions Act (with regards to interim measures) up to Section 40 (finding of an infringement) do not provide a mechanism to challenge a proposed decision. The court found there is no appeal process to the proposed decision made based on Sections 35 to 40, and the respondents were right in filing the judicial remedy, as there is no internal remedy available for them to challenge the proposed decision.

“Hence, this court finds that the High Court judge did not make any appealable error that warrants appellate intervention in dismissing MyCC’s appeal,” Lim said, adding that COA had initially overturned an earlier High Court decision that had refused to grant leave for a judicial review.

Here’s the background and timeline. MyCC had alleged that Grab abused its dominant position by imposing a restrictive clause on its drivers, effectively preventing them from promoting Grab’s current and potential competitors on e-hailing platforms and in transit media advertising. In 2019, the commission proposed a fine of RM86.77 million. Grab then filed the judicial review application in early 2020 to challenge MyCC’s decision and fine.

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