Following the pronouncement of Globe Fintech Innovations, Inc. (Mynt), the operator of GCash, to acquire shares of Electronic Commerce Payments, Inc. (ECPay), the Philippine Competition Commission (PCC) announced that it started their in-depth Phase II review.
Mynt, last 23 April 2024, notified the PCC of their mulled deal with ECPay.
Based on the proposal, Mynt will acquire 100 percent of ECPay’s issued and outstanding share capital, making ECPay a wholly-owned subsidiary of Mynt.
During its Phase I review, the PCC Mergers and Acquisitions Office (MAO) identified potential competition concerns in several key markets, including payment services, aggregator services, and merchant solutions.
These concerns potentially impact 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 18 September 2024. The Phase II review officially commenced on 19 September 2024, with the objective of conducting a more detailed assessment of whether the transaction may substantially lessen competition in the relevant markets,” the PCC statement on Friday said.
As part of the ongoing Phase II review, the PCC urged stakeholders and the general public to submit comments 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 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. 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,” the PCC further stated.