PCC, major mall operator partner to promote fair market competition

MANILA – The Philippine Competition Commission (PCC) and major mall operator in the country SM Prime Holdings, Inc. formalized their partnership advocating for a fair market competition and its benefits to Filipino consumers through a nationwide information campaign.

PCC Chairman Michael Aguinaldo and SM Supermalls assistant vice president for operations Ian Mathay signed a memorandum of cooperation (MOC) at the PCC headquarters in Quezon City on Tuesday.

As part of the MOC, the antitrust body’s 30-second video campaign will be shown in SM Cinemas nationwide to educate the public about the mandate of PCC and the benefits of a market with a level playing field.

“As you know, competition law and policy are new concepts in the Philippines. The Philippine Competition Act (PCA) was only passed in 2015. Ordinarily, when you mention competition to the man of the street, they will immediately think it must involve sports,” Aguinaldo said.

“In fact, most of the complaints that we receive, you know, through e-mails, through text, through letters, usually pertain to consumer protection, not competition. And you know that consumer protection is within the jurisdiction of the Department of Trade [and Industry].”

The PCC chief said the wide reach of SM Supermalls will be vital to raise awareness about the PCA and the Commission.

“SM Supermalls recognizes its enduring partnership with the PCC. SM Supermalls believes that fair market competition will lead to a vibrant and inclusive economy, and advance consumer welfare. It likewise shares the PCC’s vision that fair market competition serves the interest of consumers by allowing them to exercise their right of choice over goods and services offered in the market,” Mathay said.

Aside from cinema ads, SM Prime will also support PCC’s information campaign by featuring it on other SM digital platforms including LED poster boxes ad cinema directories, digital mall directories, LFD screens, and in-mall LED screens within its 86 malls across the country.

"We are proud to join forces with the PCC in promoting fair trade practices. By working together, we can empower consumers to make informed choices and contribute to a robust and competitive market,” SM Supermalls president Steven Tan said.

Moreover, the mall operator committed to assign a compliance officer who will work with the PCC in coming up with a compliance program for SM. The competition compliance officer will be the point person for any competition-related concerns that may be brought to the attention of the antitrust body, Aguinaldo said.

“This will in effect provide an opportunity for SM to correct itself in case there are any anti-competitive practices before it goes to the level of an actual case,” the PCC chair added.

Aguinaldo also said this MOC was initiated by SMPH, and the PCC is looking forward that other mall operators in the country will follow suit.

Merge, acquisition transactions

On the sidelines of the event, the PCC chief said the Commission still has ongoing merger and acquisition (M&A) transactions subject to ongoing review.

According to PCC’s M&A Office, there are eight transactions with ongoing review in the Commission, three of which are in finance and insurance sector, two in energy, two in wholesale and retail trade, and one in real estate sector.

The total value of their transactions has reached PHP204 billion.

Under the PCA, all M&A transactions that reached the thresholds for size of the transaction (SoT) and size of the party (SoP) shall notify the PCC before they can proceed with their deals.

Starting March 1, 2024, the thresholds for SoT and SoP are set at PHP3.2 billion and PHP7.8 billion. (PNA)