The recently established Philippine Competition Commission (PCC) started issuing policies to clarifying issues related to mergers and acquisitions between companies. Headed by former Economic Planning Secretary and NEDA Director-General Arsenio M. Balicasan, PCC shall ascertain fair market competition thru a level-playing field between businesses engaged in trade, industry and other commercial economic activities.
PCC and its Governing Rules
The main goal of establishing PCC is to penalize all forms of anti-competitive agreements, abuse of dominant position and anti-competitive mergers and acquisitions hence one of the first rules PCC has set is to seek their approval before any merging or acquisition of companies take place. Under Memorandum Circular 16-00, mergers and acquisitions exceeding a transaction value of PHP 1-billion pesos shall be deemed exempt from PCC’s review, however, if the transactions are coursed through the Philippine Stock Exchange, it would undergo a different guideline.
Local Company Benefits
Emerging new businesses will not be stopped anymore from materializing once PCC has gotten its ball rolling. It will open up opportunities to all, even the small business, to challenge products or services of top market players. For some time, top market players has prevented new businesses to enter but with PCC, it is expected to lead the increase of competition.
Foreign Investor Benefits
The creation of PCC according to R.A. No. 10667 or better known as Philippine Competition Act, was welcomed by many foreign investors. They are positive that with PCC, the local economy which they felt being unfairly tilted against them will have a fairer competition environment as the time progress.
For ordinary consumers, PCC is a great advantage. Having a Philippine Competition Act would protect consumers from predatory prices and acquire better products or services at more competitive rates since there can be more options to choose from. PCC can lead the way for more competitive innovation from different companies to maintain their business. Who knows in few years time, we can have a high speed internet at half the price of what we are paying now because there is already new competition.
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