THE Court of Appeal today dismissed the Malaysian Competition Commission’s (MyCC) appeal to reinstate its proposed fine of RM86.77 million against Grab Inc. and its two subsidiaries, Grabcar Sdn Bhd and Myteksi Sdn Bhd, over alleged anti-competitive practices in the ride-hailing sector.
A three-judge panel, comprising Justices Datuk S. Nantha Balan, Datuk Lim Chong Fong, and Datuk Ahmad Kamal Md Shahid, unanimously ruled in favour of the companies.
In addition to rejecting MyCC's appeal, the panel ordered the regulatory body to pay RM50,000 in legal costs.
Justice Lim, reading the court’s decision, stated that there were no merits in MyCC's appeal, highlighting that the regulatory body had failed to demonstrate sufficient procedural fairness in its handling of the case.
The judge elaborated that there was no internal procedure available to Grab Inc., Grabcar Sdn Bhd, and Myteksi Sdn Bhd to challenge the proposed decision prior to MyCC’s formal action.
The court also concluded that the High Court judge had not erred in ruling that MyCC’s investigation into the companies was flawed due to procedural impropriety.
Justice Lim further criticised MyCC's approach, describing the handling of the 2019 complaint against Grab as "cavalier" and constituting procedural impropriety.
The judge pointed out that there was no evidence to suggest that the companies had been notified of the investigation or given the opportunity to fully understand the allegations against them.
The dispute began in December 2019 when Grab Inc. and its subsidiaries filed for judicial review to challenge MyCC's proposed fine.
The commission had accused the ride-hailing giants of breaching the Competition Act by imposing restrictive clauses on their drivers, which were believed to stifle competition.
However, in February 2020, the Kuala Lumpur High Court initially dismissed the companies' application, deeming the matter premature, as the decision on the fine had not been finalised.
This decision prompted Grab to appeal, and in April 2021, the Court of Appeal ruled in favour of the companies, granting them leave for judicial review and sending the case back to the High Court for a full hearing on its merits.
In 2022, the Federal Court rejected MyCC's bid to obtain leave to appeal against the Appellate Court's decision, thereby allowing the High Court to proceed with a substantive hearing later that year.
Today's ruling effectively concludes MyCC's attempt to reinstate the RM86.77 million fine, and it marks a significant victory for Grab and its subsidiaries.
MyCC was represented by Tan Sri Tommy Thomas and Mervyn Lai Wei Shiung, while the companies were represented by a legal team led by Datuk Malik Imtiaz Sarwar. – March 19, 2025
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