The HCM City Supreme People’s Procuracy have asked Grab to pay over VND41.2 billion (USD1.8 million) in compensation based on a claim of unfair competition after the hearing of a lawsuit filed in HCM City on Tuesday.

The HCM City Supreme People’s Procuracy have asked Grab to pay over VND41.2 billion (USD1.8 million) in compensation based on a claim of unfair competition 

According to the Vinasun’s petition, Grab should have registered its promotions with the HCM City Department of Industry and Trade in advance as taxi firms do. Grab has also been accused of offering discounts for more than 90 days in a year which is against the Trade Law.       

Businesses seeking to offer promotions must register with the municipal or provincial commerce department, but Grab did not do so, according to the legal case.

Vinasun complained they had to comply with 13 regulations while Grab had to follow only three, a situation which the taxi company claimed was creating unfair competition.

Vinasun, once a dominant player in the southern taxi market, has seen its market share gradually eroded by Uber and Grab.

Grab which recently acquired Uber in Vietnam continues to grow in popularity.

Vinasun claims the operations of Grab in Vietnam were to blame for a VND42 billion fall in its revenues in 2016 and 2017.

HCM City’s Procuracy agreed to Vinasun’s allegations, claiming that Grab should operate as a ‘traditional’ taxi firm. The procuracy claimed it was illegal for Grab to launch a range of promotion, particularly zero cost trips and that Grab would be liable for Vinasun’s VND41.2 billion compensation claim.

A final ruling on the case is expected on October 29.

Tien Phong/Dtinews