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PCC, GCG ink partnership for Competitive Neutrality Promotion

09 January 2023
News Philippines

20 December 2022

PCC, GCG ink partnership for Competitive Neutrality promotion


The Philippine Competition Commission (PCC) and Governance Commission for GOCCs (GCG) signed a Memorandum of Agreement (MOA) on 16 December 2022. “We are entering this partnership with the Philippine Competition Commission to promote competitive neutrality across the GOCC Sector,” said GCG Chairperson Alex L. Quiroz.

The MOA also formalizes GCG and PCC’s coordination in reviewing existing regulations and guidelines to ensure compliance with applicable competition laws and principles.

“This MOA will provide for exchange of information when it comes to PCC’s assessment of the impact on the market of mergers or acquisitions involving GOCCs or transactions post-decoupling,” said PCC Officer-in-Charge Johannes Benjamin R. Bernabe.

The MOA facilitates consultations between the two agencies in implementing policies of mutual interest and coordination on merger review involving GOCCs. Both agencies also agreed to conduct capacity-building activities and support the rollout of the National Competition Policy.

“The underlying principle of Competitive Neutrality is fairness. It means state-owned enterprises and private businesses compete and operate on a level playing field, while recognizing GOCCs’ critical roles and interventions across sectors,” he added.

Included in the provisions of the MOA is the Policy Review where GCG and PCC will work together to review existing regulations and guidelines issued by the GCG and GOCCs. This will ensure that there is consistency adhering to both the National Competition Policy as well as the principle of competitive neutrality. The MOA also includes the formation of a Joint Task Force in the implementation of coordination and cooperation efforts of both parties.

Considering resource and operational considerations, GCG and PCC may organize joint capacity-building activities and consultative meetings to promote the activities and address concerns that will arise from the agreement. GCG and PCC will both provide access to information and documents such as reports, data sets, analyses, assessments, notices, and guidelines necessary for the implementation of the MOA.

The GCG, as the central policy-making and regulatory body mandated to safeguard GOCCs, is an ally of the PCC in ensuring the principle of competitive neutrality is upheld and a level playing field is maintained.