PRESS RELEASE
14 November 2024

PCC highlights synergy between antitrust and sustainability at Hong Kong panel

The Philippine Competition Commission (PCC) highlighted the growing overlap between antitrust regulations and sustainable development initiatives at the 10th “Antitrust in Asia Conference” held in Hong Kong on November 7, 2024.

In a panel discussion, PCC Chairperson Michael Aguinaldo explained to antitrust practitioners, lawyers, and academics in the Asia-Pacific that the Commission is actively integrating sustainability into its work, particularly when reviewing mergers and acquisitions (M&As) and crafting new policies.

To date, the PCC has approved 25 mergers in the renewable energy sector, supporting the Philippines’ goal of transitioning to cleaner energy sources.

The PCC has been consulted on various bills that could impact sustainability. The agency has submitted position papers advocating for fiscal subsidies on electric vehicles and the institutionalization of a framework for clean energy transition policies.

In 2021, the PCC Economics Office published studies on the refined petroleum industry and the fertilizer sector, both of which considered environmental impact in their assessments. Currently, the same office is conducting a study on the impact of Sustainable Development Goals (SDGs) on merger reviews and the substitutability of energy-efficient appliances.

The National Competition Policy, as noted by Aguinaldo, is the most relevant government policy that balances environmental sustainability and competition. While this whole-of-government strategy encourages agencies to adopt pro-competitive policies, it also discusses how restrictions to trade may be allowed when they are for consumer welfare, or their benefits outweigh the costs, or are the only way to achieve policy objectives, which necessarily include environmental outcomes.

As Aguinaldo emphasized, “It is clear from the foregoing cases, when it comes to both M&As and policymaking, that competition and sustainability are not mutually exclusive. In fact, they can often complement each other. By considering both economic efficiency and environmental impact, antitrust authorities can make decisions that benefit both consumers and the environment”.

Joining Aguinaldo on the panel were Jet Deng, senior partner at Dacheng Law Offices in Beijing; Peggy Leung, managing associate general counsel at HSBC in Hong Kong; and Kenta Suzuki, director of the consultation and guidance office at the Japan Fair Trade Commission. Elizabeth Richmond, partner at Clifford Chance in Sydney, moderated the panel.

The ”Antitrust in Asia: One Size Fits All?” conference was organized by Concurrences in partnership with Clifford Chance, RBB Economics, Akin Gump, Baker McKenzie, Dentons, O’Melveny & Myers, Google and Meta.

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REFERENCE:
publicaffairs@phcc.gov.ph
PCC Public Affairs and Research Division

Link: https://www.phcc.gov.ph/press-releases/pcc-highlights-synergy-between-antitrust-and-sustainability-at-hong-kong-panel/