The Philippine Competition Commission (PCC) yesterday said there is a need to address potential competition issues in digital markets given that the same big tech companies accused of abusing market dominance in advanced jurisdictions are also operating in the Philippines.
In a press statement, the PCC said it recommended measures to address potential competition issues following the findings of a market study titled “Digital Platforms and Online Advertising: A Guide for Competition Policy.”
In the study, PCC recommended the following measures to address potential competition issues: building relationships with other countries on policing the digital market through bilateral and regional partnerships; considering advocating for specialized laws on the digital economy, and strengthening the implementation of the Philippine Competition Act through comprehensive guidelines for digital market investigations.
The PCC said that unlike traditional markets, digital platforms such as social media and online marketplaces present unique challenges to how an online market is analyzed and how regulators address competition concerns.
“Among others, the study explores how digital platforms use advantages such as leveraging their user base for premium services and advertising, creating significant barriers to entry for new competitors,” it also said.
The PCC said without strong internal capacities, including a well-prepared workforce capable of investigating and resolving complex digital market issues, “the country risks ineffective enforcement of antitrust laws.”
“Therefore, building these capacities is essential for the competition authority to render sound decisions and ensure fair competition in the digital economy,” it said.
The study discussed initiatives in the United States (US) and the European Union (EU) against major technology firms, ranging from abuse of dominance in online shopping to manipulation of advertising space auctions.
The PCC noted the EU’s Digital Markets Act (DMA) is often cited as a model for legislation aimed at curbing the market power of technology giants, though concerns are raised about its potential bias against US-based companies.
In Southeast Asia, the study flagged that there is no unified antitrust law specific to the digital sector.
But efforts by the Asean Experts Group on Competition are underway to address competition issues in cross-border digital trade, including the development of an investigation manual and enhanced capacity-building initiatives,” the PCC said.
In 2023, the PCC published guidelines on the motu proprio review of mergers and acquisitions in digital markets. It also developed horizontal and non-horizontal merger guidelines and other internal investigation procedures for enforcement.
