Grab Indonesia was fined $2 million for using its ride-hailing algorithm to give preferential treatment to drivers affiliated with TPI car rental company, providing them 3x higher ride allocation than independent drivers.
Grab Indonesia, the local operation of ride-hailing company Grab, was fined 30 billion rupiah ($2 million) by Indonesia's Business Competition Supervisory Commission (KPPU) for discriminatory practices. The company was found guilty of modifying its ride-matching algorithm to give preferential treatment to drivers from Teknologi Pengangkutan Indonesia (TPI), a Grab-affiliated car rental firm. According to evidence obtained during a 2017 TPI orientation session, drivers in the Gold Captain rental scheme were promised '3x higher ride allocation' compared to non-TPI drivers. TPI was also fined 19 billion rupiah ($1.3 million). The case began after complaints from independent Grab drivers in North Sumatra who reported being disadvantaged by unfair order distribution. KPPU alleged that this practice constituted monopolistic behavior and violated three articles of Indonesian competition law relating to vertical integration, exclusive deals, and discriminatory treatment. The algorithmic bias reduced orders for non-TPI drivers and decreased their numbers in the market. Grab denied the allegations, claiming its booking system was fair and based purely on performance and merit, and announced plans to appeal the decision.
Domain classification, causal taxonomy, severity scores, and national security assessments were LLM-classified and may contain errors.
Unequal treatment of individuals or groups by AI, often based on race, gender, or other sensitive characteristics, resulting in unfair outcomes and unfair representation of those groups.
AI system
Due to a decision or action made by an AI system
Intentional
Due to an expected outcome from pursuing a goal
Post-deployment
Occurring after the AI model has been trained and deployed