Appeals Court delays ruling on MyCC’s RM86.77m fine appeal against Grab

PUTRAJAYA, Nov 18 — The Court of Appeal has reserved its decision on the appeal filed by the Malaysian Competition Commission (MyCC) challenging the High Court’s ruling, which quashed its proposed fine of RM86.77 million against Grab Inc. and its two subsidiaries for alleged anti-competitive practices in the e-hailing sector.

Justice Datuk S. Nantha Balan, who led a three-judge panel, stated that the court requires additional time to consider the arguments presented by the counsels representing MyCC and the three companies — Grab Inc., Grabcar Sdn Bhd, and Myteksi Sdn Bhd.

A case management session has been scheduled for tomorrow to set a date for the decision.

The panel included Justices Datuk Lim Chong Fong and Datuk Ahmad Kamal Md Shahid.

On July 6, 2023, Grab Inc., Grabcar Sdn Bhd, and Myteksi Sdn Bhd successfully obtained a certiorari order from the High Court, which annulled MyCC’s proposed fine, leading MyCC to appeal the decision.

During today’s hearing, MyCC’s counsel, Tan Sri Tommy Thomas, argued that the companies’ application for judicial review was premature, as the companies had not yet exhausted the appeal process outlined under the Competition Act 2010.

He further contended that MyCC’s decision to impose the proposed fine was not final and, therefore, not subject to judicial review at this stage.

He submitted that MyCC’s proposed decision is merely part of its investigative procedure, conducted in its capacity as the body responsible for enforcing the Competition Act.

In response, Datuk Malik Imtiaz Sarwar, representing Grab Inc. and its subsidiaries, maintained that the High Court’s ruling was correct.

He argued that MyCC’s assertion of the proposed decision being merely part of the investigative process was flawed, pointing to Section 36(1) of the Competition Commission Act, which clearly stipulates that the issuance of the proposed decision follows the completion of an investigation.

Malik Imtiaz further contended that while MyCC’s decision was not final, it carried significant implications and adverse effects on the companies, and therefore it should be amenable to judicial review.

In December 2019, the three companies filed a judicial review to challenge MyCC’s proposed RM86.77 million fine for alleged violations of the Competition Act, specifically restrictive clauses imposed on their drivers.

In 2020, the High Court denied Grab and its subsidiaries leave to initiate a judicial review, deeming the application “premature” since the proposed decision was not final.

Grab appealed, and in April 2021, the Court of Appeal allowed the appeal, granting leave for judicial review and remitting the case to the High Court for a full hearing on its merits.

Subsequently, in 2022, the Federal Court dismissed MyCC’s application for leave to appeal against the appellate court’s decision, paving the way for the High Court to conduct a substantive hearing on the judicial review later that year. — Bernama