GCG, PCC ink accord on promoting ‘competitive neutrality’

The Governance Commission for Government-Owned and Controlled Corporations (GCG) and the Philippine Competition Commission (PCC) have signed an accord to promote competitive neutrality.

Competitive neutrality is defined as both state-owned and private enterprises are competing on a level playing field.

In a statement on Tuesday, the GCG said the memorandum of agreement (MOA) with PCC was signed on December 16, 2022.

Under the MOA, both agencies will formalize their coordination in reviewing existing regulations and guidelines to ensure compliance with applicable competition laws and principles.

The agreement also facilitates consultations between the GCG and the PCC 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.

“We are entering [this] partnership with the Philippine Competition Commission to promote competitive neutrality across the GOCC sector,” said GCG Chairperson Alex Quiroz.

“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 Bernabe.

“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,” added Bernabe.

The GCG said that the MOA included provisions on policy review where both agencies 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, it said.

The MOA also includes the formation of a joint task force in the implementation of coordination and cooperation efforts of both parties.

The GCG said that under the agreement both agencies 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,” the governance body on GOCCs said. — Ted Cordero/RSJ, GMA Integrated News