We are pleased to present our 3rd Regional Competition Bites for 2023.
The third quarter has seen important regulatory developments and enforcement action across Southeast Asia.
Mergers continue to take centre stage. In Indonesia, the Indonesia Competition Commission (“ICC“) fined two foreign companies for filing merger notifications ranging from one to three business days late, and has demonstrated its willingness and ability to exercise its jurisdiction over foreign companies, rather than just through their local subsidiaries. In Singapore, the Competition & Consumer Commission of Singapore (“CCCS“) has cleared two mergers, one in relation to electronic chemicals and the other in relation to liquified petroleum gas. Further, CCCS has moved its review of the proposed acquisition by Grab of Trans-cab (Singapore’s third largest taxi operator) into a possible Phase II review if the parties are unable to address these concerns with commitments. Given the nature of this business, this proposed acquisition has gained strong public interest in Singapore, as consumers closely watch how the proposed acquisition may affect the price, quality and quantity of taxi services here. Meanwhile, in the Philippines, the Philippine Competition Commission (“PCC“) has commenced Phase II reviews pertaining to the retail pharmaceutical market and the broadband services market. In Thailand, the Trade Competition Commission of Thailand (“TCCT“) has published nearly 100 merger cases in 2022 and over 50 thus far in 2023. As merger control activity and regulatory scrutiny in the region increases, businesses should keep abreast of developments in this area to avoid violating competition laws when undertaking mergers and acquisitions.
Apart from mergers, there is a continued emphasis on tackling rising inflation and cost of living. In Cambodia, the Cambodia Competition Commission (“CCC“) has issued a press release and new legislation relating to consumer protection in the real estate and housing market. This comes off the back of rising real estate prices in Cambodia. In the Philippines, PCC has partnered with the Department of Agriculture to crack down on cartels in the agriculture and foodstuff industries, including products such as onions, rice and sugar. Yet, it is not merely housing or commodities that regulators focus on. In Malaysia, the Malaysia Competition Commission (“MyCC“) has raised its objections to an increase in conveyancing fees, whilst in Thailand, the TCCT has made regulation of the e-commerce sector its priority for 2024. The common denominator amongst regulators in the region is ensuring that anti-competitive conduct and unfair practices that could result in detriment to consumers are prevented.
Cambodia and Vietnam have also continued to expand their competition law regimes. The CCC expects to complete the drafting of all antitrust sub-regulations and guidelines by the end of the year. On the other hand, the Vietnam Competition Commission (“VCC“) has now made a new competition case complaint form available to the public, whilst also VCC making detailed plans to implement the Law on Consumer Rights Protection. These developments bode well for the region as competition law and consumer protection capabilities are built up, and regulators are better positioned to collaborate and leverage one another’s expertise.
Finally, regulators remain active in monitoring the market for competition law violations. Interestingly, the ICC has kept an eye on negative online campaigns relating to the presence of Bisphenol A in the bottled water market, stating that this could lead to anti-competitive effects. MyCC has also recently concluded an investigation (without finding any violation) into the prominent food delivery platform, Foodpanda, in relation to potential exclusivity arrangements that could harm participating merchants.
The Rajah & Tann Asia team remains engaged and up to date with the ever-evolving landscape of competition law in the region. Please reach out to us if you wish to further discuss these developments.
For more information, click here to read the full Legal Update.
