The Philippine Competition Commission (PCC) is proposing a significant overhaul of the rules governing exemptions from compulsory merger notification for public-private partnership (PPP) projects, signaling a shift toward a more development-oriented approach to competition regulation.
Through a draft memorandum circular released for public consultation, the PCC’s Mergers and Acquisitions Office seeks to align competition policy more closely with the objectives of the PPP Code or Republic Act No. 11966. The proposal introduces a framework that links exemptions not only to competition considerations but also to regional development goals and priority economic sectors.
At the center of the proposal is a location-based approach. PPP projects located in disadvantaged areas, defined as provinces or localities with gross domestic product per capita at or below 75 percent of the national average, may qualify for exemption if they involve new economic activity. The provision reflects the government’s broader strategy of directing investment toward underserved regions where infrastructure gaps and limited private sector participation continue to constrain growth.
The draft also identifies specific sectors that may merit exemptions, including data transmission, agriculture, tourism, research and development, regional airports, and maritime ports. These industries are viewed as critical enablers of productivity, innovation, and connectivity. Policymakers appear to recognize that high capital requirements and structural barriers often discourage investment in these sectors, particularly outside major urban centers.
Importantly, the proposal does not grant blanket exemptions. Instead, it embeds competition review throughout the PPP process, requiring feasibility studies, economic justifications, and compliance with safeguards such as fair, reasonable, and non-discriminatory access standards.
The proposed framework suggests a broader evolution in the PCC’s role. Rather than focusing primarily on merger control after transactions are structured, the commission is seeking to balance competition concerns with national development priorities. If adopted, the new rules could help accelerate infrastructure investment while maintaining oversight against anti-competitive behavior, a balance that has become increasingly important as the Philippines ramps up its PPP pipeline.
