SM agrees to independent audits on competitive behavior

SM Investments Corp. (SMIC) will open its books to random independent audits in making sure that all competitors of Goldilocks Bakeshop operates within a level playing field in all of its malls, the Philippine Competition Commission (PCC) said Wednesday.

In a press briefing in Makati City, PCC Commissioner Johannes Bernabe said SMIC has agreed to be audited by a third-party auditor, specifically to ensure that it does not obtain data transactions from competitors of Goldilocks Bakeshop such as Conti’s and Red Ribbon.

“‘Pag nakikita mong itong product is the one that sells the most, you can instruct Goldilocks na, uy, ito pala ang pinakamabenta sa let’s start channeling our energy into these products,” Bernabe said.

The PCC announced earlier this month it approved the acquisition of Goldilocks Bakeshop Inc. by Sy-led SMIC.

The antitrust commission is mandate to review business transactions worth at least P1 billion.

SMIC must ensure it will not favor Goldilocks over its competitors, Bernabe noted.

“Kung ikaw ‘yung landlord, in other jurisdictions, what has happened is they would tend to favor ‘yung kanilang affiliate—bibigyan mo ng magandang lokasyon or kaya kung may bagong competitor na malakas hindi mo papapasukin sa mall mo,” he said.

“Lahat ng tenants kita mo ang sale kasi ‘yun ang basehan mo for the rent that you will charge your tenants ... They cannot access the specific sales data,” he said.

“We will have third party monitor under the supervision of PCC which will really check ‘yung IT systems nila if the firewalls are maintained, talagang walang access sa pumapasok na data,” the commissioner noted.

“It’s going to be on a random audit,” he said. —VDS, GMA News