PCC eases rules for mandatory merger, acquisition notifications

The Philippine Competition Commission (PCC) on Tuesday said it has increased the thresholds requiring companies to notify the anti-trust body of mergers and acquisitions.

In a statement, the PCC said it raised the size of party (SOP) ceiling from P8.5 billion to P9.1 billion and the size of transaction (SOT) threshold from P3.5 billion to P3.8 billion, effective March 1, 2026.

Under the new thresholds, companies must notify the PCC if the SOP or SOT exceeds P9.1 billion and P3.8 billion, respectively, in accordance with Section 17 of Republic Act No. 10667 (Philippine Competition Act) and Rule 4, Section 3 of its implementing rules and regulations (IRR).

The PCC has the power to set and adjust these thresholds under the law, and the new limits also apply to joint venture deals.

The PCC said the adjustments account for inflation, economic growth, and prevailing market conditions, allowing the commission to focus its resources on transactions that are more likely to have a significant impact on competition in the Philippines.

The new thresholds were calculated using the nominal GDP growth from the previous calendar year, based on Philippine Statistics Authority estimates, and rounded up to the nearest hundred million pesos.

As part of its mandate, the PCC checks major mergers and acquisitions to make sure they do not reduce competition. Clear and fair reporting rules help businesses know what is required while keeping markets competitive and protecting consumers.

The commission may also review deals below the thresholds. It can initiate a review motu proprio if it suspects a transaction could significantly harm competition or if preliminary findings indicate potential anti-competitive effects.—MCG, GMA Integrated News