The district court has overturned the competition watchdog’s claims of Grab Indonesia offering preferential treatment to drivers in its rental programme. Indonesia’s business competition supervisory commission (KPPU) built the case after it received complaints from independent Grab drivers that claimed having an unfair distribution of orders.
Following the complaints, the KPPU alleged Grab Indonesia was using preferential treatment for drivers who rent cars via the Grab-affiliated company, Teknologi Pengangkutan Indonesia (TPI).
The watchdog later decided, on 2 July 2020, to impose a US$3.2million fine on Grab Indonesia and TPI for violations of articles 14 and 19 in Law (UU) No. 5/1999 concerning the “prohibition of monopolistic practices and unfair business competition” relating to its partnership with TPI.
Hotman Paris Hutapea, at Hotman Paris & Partners, represented Grab Indonesia and TPI to appeal to the South Jakarta District Court, which resulted in the case being cancelled. The verdict also means there was no violation and discrimination as stated in the law.
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