The Philippine Competition Commission released a comprehensive market study highlighting the urgent need for discussions on emerging competition concerns and potential regulatory reforms in the Philippine digital economy.
The study, titled “Digital Platforms and Online Advertising: A Guide for Competition Policy,” underscores the necessity for the Philippines to develop robust domestic capabilities to address potential competition issues in digital markets.
Given the presence of major tech companies that have faced accusations of market dominance in advanced jurisdictions, the study said the Philippines should proactively address similar concerns within its own digital landscape.
Unlike traditional markets, digital platforms present unique challenges for market analysis and regulatory oversight.
The study explores how these platforms leverage their user bases for premium services and advertising, creating substantial barriers to entry for new competitors.
The study recommends three key actions to strengthen its internal capabilities: fostering bilateral and regional partnerships with advanced jurisdictions, considering specialized digital economy legislation, and enhancing the implementation of the Philippine Competition Act through comprehensive guidelines for digital market investigations.
The PCC made significant strides in 2023 in addressing digital market competition by publishing guidelines for motu proprio review of mergers and acquisitions, developing horizontal and non-horizontal merger guidelines, and establishing internal investigation procedures.
It said that without a well-prepared workforce capable of investigating and resolving complex digital market issues, the country risks ineffective enforcement of antitrust laws.
The study said building these capacities is crucial for the competition authority to make informed decisions and ensure fair competition in the digital economy.
The study referenced initiatives in the US and EU against major technology firms, including allegations of dominance in online shopping and manipulation of advertising auctions.
While the EU’s Digital Markets Act (DMA) is often cited as a model for curbing the market power of tech giants, concerns about its potential bias against US-based companies have been raised.
The study notes the absence of a unified antitrust law in Southeast Asia, specific to the digital sector.
However, the ASEAN Experts Group on Competition is actively working to address cross-border digital trade competition issues through an investigation manual and enhanced capacity-building initiatives.
