Antitrust body mulls threshold to define 'market dominance'

Apart from setting the lower limit for compulsory notification of mergers and acquisitions, the Philippine Competition Commission (PCC) is also planning to set up another threshold to determine a company's dominant market position.

"We are developing rules and guidelines, particularly in the enforcement of abuse of dominant position, where we have to study an alleged activity or behavior as anti-competitive," PCC Chairman Arsenio Balisacan told reporters on the sidelines of a forum in Makati City.

Section 17 of Republic Act 10667 or the Philippine Competition Act states that the PCC is authorized to determine thresholds and promulgate other criteria for notification.

"We have to define the relevant market, define the indicators in that relevant market," Balisacan said.

The antitrust body is looking at market shares in particular industries or sectors as an indicator of market dominance.

"The law mentions about market shares in terms of assessing whether a certain firm could exercise market power," the antitrust chief noted.

Primarily, a firm can be considered dominant if it has at least 50 percent market share, he said.

Last month, after initiating review and consultations with the business sector, the PCC released a policy note keeping the P1-billion threshold for mergers and acquisitions that must be reported to the antitrust body before the transaction can be consummated.

"So far, the threshold appears to be reasonable. And at this point we don't intend to change or raise it," Balisacan said.

"Again, we will review the threshold periodically because we have to adjust it for changes in economic structure, economic growth and adjust it to inflation. It is within the power of the PCC to do so," he noted. — VDS, GMA News