PCC chairman Arsenio Balisacan
MANILA – The Philippine Competition Commission (PCC) reiterated the crucial role of competition policies as the government tries to revive the economy amid the pandemic.
In PCC’s virtual roundtable on Competition in the Recovering Economy, PCC chairman Arsenio Balisacan said policies that may lead to lessening competition, increasing market concentration, and distorting market structures “must be lifted when no longer needed”.
“Such consequences will stifle long-term prospects for innovation, growth, and consumer welfare,” Balisacan said.
To recall, the Bayanihan to Recover as One (Bayanihan 2) has increased the compulsory notification for merger and acquisition (M&A) transactions to PHP50 billion from the previous PHP6 billion for the Size of the Person, and PHP2.4 billion for the Size of Transaction.
Although this could save failing and existing firms affected by the pandemic through mergers and acquisitions, this could result in a rise in market power.
“The rise in market power risks consumer harm if it comes with the ability and incentive to exercise that market power in the form of higher prices, lower quality of goods and services, or less innovation,” Balisacan said.
Bayanihan 2 has also prevented the PCC to conduct motu proprio review for one year.
The PCC chief said that with the fewer M&A notifications following the passage of Bayanihan 2, the anti-trust body will heighten its enforcement efforts to prevent anti-competitive deals and abusive practices that harm consumers.
“Adhering to competition principles remains beneficial during the pandemic, and becomes even more so during the recovery period, as we work together to build a more resilient and inclusive economy,” Balisacan said. (PNA)
