The civil court has quashed the Malaysian Competition Commission’s (MyCC) proposed RM86 million fine against Grab over the ride-hailing firm’s anti-competitive practice.
High Court judge Wan Ahmad Farid Wan Salleh in Kuala Lumpur this afternoon allowed the judicial review by Grab Inc as well as related corporate entities Grabcar Sdn Bhd and Myteksi Sdn Bhd.
The judge also ordered MyCC to pay RM20,000 costs to Grab.
In December 2019, Grab filed the legal challenge against MyCC’s proposed fine of more than RM86 million against the company for violating the Competition Act 2010 through purported restrictive clauses imposed on its drivers.
During today’s online proceedings conducted via Zoom, Farid ruled that MyCC’s decision behind the fine is “tainted with procedural impropriety”.
No proper probe
The judge pointed out that the regulator’s proposed fine was not backed by a proper investigation process.
Farid noted that while the proposed fine was over a 2019 complaint lodged to MyCC by a Grab driver over the company’s anti-competitive practice, the regulator relied on 2018 complaints regarding the company’s purported violation of the Competition Act 2010.
He added that he could not accept MyCC’s contention that the judicial review could hamper the regulator’s investigation into anti-competitive practice.
Farid noted that the proposed fine is a decision by a public authority that could still be the subject of a legal challenge via judicial review.
The judge however did not allow Grab’s bid for damages against MyCC, pointing out that there is no element of bad faith behind the regulator’s decision for the proposed fine.
Counsel Malik Imtiaz Sarwar, Shanthi Kandiah, and Yvonne Lim appeared for Grab while Kwan Will Sen represented MyCC.
When contacted, Kwan said the legal team would seek instructions from MyCC on whether to appeal to the Court of Appeal.
In mid-2020, the High Court denied leave for Grab to commence the judicial review.
However, in April 2021, the Court of Appeal allowed the e-hailing firm’s appeal to obtain leave and sent the judicial review back down to the lower court for a hearing of its merits.
MyCC appealed to the Federal Court, which last year denied its appeal.
The High Court then proceeded to hear the judicial review’s merits last year. - Mkini
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