MANILA – The Philippine Competition Commission (PCC) will intensify its enforcement activities after the newly passed Bayanihan to Recover as One (Bayanihan 2) Act suspended the merger and acquisition (M&A) notification and review of the antitrust body.
Under the Bayanihan 2, compulsory notification for M&A transactions amounting to less than PHP50 billion will be exempted, while also suspending PCC’s exercise of motu propio review of M&A transactions for a period of one year.
In a statement Monday, PCC said that despite the suspension of these activities of its Merger and Acquisition Office under the new law, it will do its part as antitrust authority by protecting the people from anti-competitive behavior in the market such as cartels, monopolies, and combinations in restraint of trade that affect the supply, distribution, and movement of essential goods and services.
“The PCC is intensifying enforcement activities to scan the market for anti-competitive agreements and abusive practices that harm the Filipino people,” the Commission said.
In July, PCC chair Arsenio Balisacan expressed concern over restricting the Commission’s enforcement of the Philippine Competition Act (PCA) to preserve fair market competition.
Balisacan then noted that competition policy enforcement remains relevant during the pandemic that will protect consumers from abusive anti-competition behavior.
He added acquisition of a failing firm by another company is not prohibited provided it is the lone feasible solution to save the business.
“The PCC will work even harder to ensure that consumer welfare and competition are safeguarded especially at a time when consumers and small businesses are more vulnerable to unscrupulous business practices. Rest assured that the PCC will exert all efforts to protect competition in the present for the future,” the Commission said.
Under the PCA, the antitrust body reviews M&A deals of companies with transaction value of at least PHP6 billion for the Size of the Person, and PHP2.4 billion for the Size of Transaction. (PNA)
