PCC starts ‘in-depth’ review on GCash operator’s purchase of ECPay

The Philippine Competition Commission (PCC) has started the "in-depth" review of the planned acquisition of Electronic Commerce Payments Inc. (ECPay) by GCash operator Globe Fintech Innovations Inc. (Mynt).

In October last year, Globe Telecom disclosed that it had sold its shares in EC to Mynt for P2.31 billion. 

The transaction effectively allowed Mynt to fully acquire ECPay, making the latter a wholly owned subsidiary of GCash’s parent firm.

Sought for comment, GCash said that “this is a standard process of reviewing merger and acquisition (M&A) transactions by the Philippine Competition Commission (PCC).”

“We are working with the PCC to submit the necessary requirements as part of their review process,” GCash said.

In a statement, the PCC said on Friday that it had been notified by Mynt about the acquisition deal on April 23, 2024.

Following the notification, the antitrust watchdog’s Mergers and Acquisitions Office (MAO) conducted a Phase I review, in which it “identified potential competition concerns in several key markets, including payment services, aggregator services, and merchant solutions.”

The PCC said the identified concerns would involve potential impacts on competition in retail and digital payment channels, such as sari-sari stores, retail outlets, and online payment systems.

“In light of these concerns, the MAO proceeded to Phase II review of the transaction and issued a Request for Information to the parties involved on September 18, 2024,” the PCC said.

“The Phase II review officially commenced on September 19, 2024, with the objective of conducting a more detailed assessment of whether the transaction may substantially lessen competition in the relevant markets,” it added.

The PCC said the Phase II or “in-depth” review was ongoing and it would invite stakeholders and the general public to comment on the potential impact of this acquisition. 

“Comments should address how the transaction may affect competition, quality, or the availability of services in the relevant markets,” the PCC said.

The antitrust watchdog said interested parties may submit their comments until December 8, 2024.

“The PCC encourages the public to contribute to the review process, as the feedback will be vital in determining the potential effects of the acquisition on market competition and consumer welfare,” it said.

 “In accordance with the Philippine Competition Act, the PCC is committed to ensuring that mergers and acquisitions do not substantially reduce competition and harm consumers in affected markets,” it added. -NB, GMA Integrated News