The Philippine Competition Commission (PCC) is reviewing three merger and acquisition (M&A) transactions that may have the tendency to lead to anti-competitive behavior during the period when the merger review by the body was suspended due to the pandemic.
The PCC also reported it received over a hundred complaints against 13 developers that limit the entry of internet service providers (ISPs) in their properties, a practice that persists even after a real estate firm has been slapped a hefty fine for its exclusive ISP deal.
These deals and practice have been flagged as possibly violative of the Philippine Competition Act.
PCC commissioner Johannes Bernabe in a press briefing said the monitoring division in the mergers and acquisitions office reported at least two transactions during the effectivity of Bayanihan to Recover as One Act (Bayanihan 2) will have to be subject to motu proprio review.
The other one subjected its transaction to a voluntary review.
Bernabe did not identify the companies involved in the transactions but said they are in the distribution sector and in the industrial sector.
Bayanihan 2ssued in September 2020 increased the compulsory merger notification threshold to P50 billion for two years, and suspended PCC’s power to review non-notifiable M&As motu proprio for one year.
Bernabe clarified transactions are not immune to motu proprio review as it is a disincentive for firms to try and work around review system.
“It would be more painful for these firms to unravel their transaction one or two years down the line if it would be subject to a moot proprio review,” he added.
Meanwhile, Bernabe said the PCC’s enforcement office issued 13 advisory letters to the developers over the exclusive ISPs in their properties. eEight agreed to voluntarily comply and correct their practices. One is in the process of trying to comply and the four others may proceed to further investigation for not rectifying their anti competitive behavior.
A memorandum circular will be issued to provide the guidelines on competitive selection process or mechanism that would ensure that there are no exclusivity arrangements.
