Day: September 2, 2022

The Philippine Competition Commission (PCC) found reasonable grounds to open a preliminary inquiry into the complaints filed by Dito Telecommunity against Globe Telecom and Smart Communications.The PCC Enforcement Office (CEO) will look into the allegations in the complaints for possible violations of Section 15 of the Philippine Competition Act (PCA) pertaining to abuse of dominance. The CEO will also study whether other violations of the PCA pertaining to anti-competitive agreements have been committed.

As it proceeds with the investigation, the PCC will coordinate and consult with the National Telecommunications Commission and other relevant authorities for regulatory and technical considerations.

The PCC takes complaints of anti-competitive behavior very seriously. Without prejudging the outcome of the CEO’s investigation, the PCC reminds players with substantial market power, not only in the telecommunications industry but across sectors, of their responsibility to compete fairly and to adhere to the principles of competition.

Source: Association of south East Asian Nation

The Philippine Competition Commission (PCC) strengthens its enforcement capacity through a partnership with the National Bureau of Investigation (NBI) and a project to develop its digital forensics capabilities.

In a ceremony today, the PCC and NBI inked a Memorandum of Agreement (MOA) led by PCC Officer-in-Charge Johannes R. Bernabe and NBI Director Medardo G. De Lemos to institutionalize a partnership for enforcing the Philippine Competition Act (PCA) between the antitrust authority and the primary investigative body of the country.

“With PCC’s expertise in market investigation and processing of economic data, and NBI’s extensive network and experience in on-the-ground investigations, this partnership will mutually strengthen our enforcement capacity towards our shared goal of cracking down on cartels and other violations of the PCA,” PCC Officer-in-Charge Johannes R. Bernabe said.

The partnership broadens PCC’s long-time cooperation with the Department of Justice (DOJ). With the inclusion of the DOJ’s investigating arm in the cooperation framework, PCC may now enlist the aid of NBI in a more comprehensive investigation of anti-competitive conduct. As a first step, PCC and NBI will form a Competition Task Force to work together within their respective mandates. Both will also conduct joint case conferences, monitoring, specialized trainings, and capacity-building activities.

In a separate initiative, PCC is setting up a digital forensics laboratory to maximize the use of electronic evidence for the prosecution of cartels or abuses of dominance by big businesses. The laboratory is composed of specialized forensics equipment, software, and other tools useful for operatives. PCC investigators will undergo proficiency trainings and accreditation on the use of digital forensics equipment.

“The development of PCC’s digital forensics capacity is a major asset for our enforcement team. The use of digital forensics allows our investigators to uncover trails of electronic transactions or documents that point to cartels or collusions,” Bernabe said.

Under the PCA and Supreme Court A.M. No. 19-08-06-SC, the PCC is empowered to conduct unannounced inspections of premises as part of its investigative tools.

The agency’s primary mandate is to promote and to maintain market competition by regulating anti-competitive agreements like bid rigging, abuses of dominant position, and anti-competitive mergers and acquisitions.

Source: Association of south East Asian Nation

The Philippine Competition Commission (PCC) has received today two separate complaints filed by Dito Telecommunity against Globe Telecom and Smart Communications for possible anti-competitive practice in their interconnection agreements.

Interconnection is an essential component of the telecommunications industry as it allows interoperability and exchange of calls, SMS, and other information from one network to another.

As such, our Competition Enforcement Office (CEO) is now evaluating the merits of Dito’s complaints. The Commission has 10 days within which to decide whether or not to give due course to the complaint. If given due course, our CEO will proceed to investigate the charges and if it subsequently finds sufficient basis, file with the Commission en banc a Statement of Objections against the allegedly erring entities.

The PCC shall also consult with the National Telecommunications Commission for related regulatory concerns.

Source: Association of south East Asian Nation

To date, the Philippine Competition Commission (PCC) has not been consulted and has not received any notification from MediaQuest Holdings and ABS-CBN Corp. on the “investment agreement” between TV5 and ABS-CBN, and the reported “sale and purchase agreement” between Cignal Cable Corp. and Sky Cable Corp.

The reported transactions refer to ABS-CBN Corp.’s acquisition of shares representing 34.99 percent of stock in TV5 for P2.16 billion, as well as Cignal Cable Corp.’s acquisition of 38.88 percent of Sky Cable Corp. for P2.862 billion.

Transactions that meet the P50-billion thresholds set by the Bayanihan to Recover as One Act (Bayanihan 2) are required to be notified to the PCC for review to ensure that there is no harm to competition and detriment to consumer welfare. With the lapse of the period set under Bayanihan 2 on Sept. 15, the PCC notification thresholds will revert to appropriately lower levels that reflect the relative size and performance of the economy.

While the PCC determines whether the thresholds under Bayanihan 2 have been met, it may also direct its Mergers and Acquisitions Office to conduct an initial assessment if the effects of the transactions involving TV5 and ABS-CBN, and Cignal and SkyCable, warrant a motu proprio review. A merger review will determine if the transaction may result in a substantial lessening of competition in the relevant markets.

The PCC’s mandate to review mergers and acquisitions is centered on protecting consumers from transactions that may result in unchecked market power. Mergers and acquisitions often mean fewer choices for consumers. Lack of competition may lead to higher prices or lower quality products and services, all to the disadvantage of consumers.

The PCC has always been supportive of business expansion activities, especially in this post-pandemic period when the economy is rebuilding and recovering. At the same time, it wants to ensure that measures to help recover from the pandemic do not result in harm to the market in the long run.

Source: Association of south East Asian Nation

The Philippine Competition Commission (PCC) trusts that firms undertaking sizeable mergers or acquisitions conduct due diligence to ensure compliance with our antitrust law and engage in consultation with the Commission, where necessary.

This includes M&A or joint venture transactions with considerable share in the markets they operate in—such as the reported transaction between TV5 and ABS-CBN, two of the top media firms in the country.

The PCC’s mandate to review transactions, whether on the basis of compulsory notification or motu proprio, remains in place to avoid the rise of new monopolies or consolidation of market power that may be detrimental to consumers.

The PCC supports the push for an enabling business environment to spur investments and partnerships amid the country’s post-pandemic recovery period. Still, it reminds firms to do so in compliance with the Philippine Competition Act to avoid penalties, unwinding of transactions, and ensure no substantial lessening of competition in the relevant markets.

Source: Association of south East Asian Nation