THE PHILIPPINE Competition Commission (PCC) fined Huawei contract manufacturer Wingtech Technology Co. Ltd. following late notification of its acquisition of Dutch semiconductor firm Nexperia Holding B.V., the anti-trust authority said in a statement on Monday.
The Philippine Rules on Mergers Review requires companies that have business interests in the Philippines to notify the PCC within 30 days after the execution of their agreement, but the firms filed with the anti-trust body after 194 days.
“The qualified transactions are required to undergo competitive assessment given their scale or merger may be market-moving or can alter the relevant market where they operate. The PCC is mandated to conduct competitive assessment to ensure these mergers will not harm the interest of consumers,” the commission said.
PCC cleared the companies after fining them P716,150 or half of 1% of the P14.3 billion transaction.
The anti-trust body ultimately concluded that there is no lessening of competition in the smartphone industry since Wingtech holds no business operations in the Philippines and Nexperia exports the products it manufactures in the country abroad, it said.
Wingtech is a contract manufacturer for Huawei Technologies and Xiaomi Corp., while Nexperia develops, manufactures, and sells semiconductors for electronic devices and cars.
The firms have until Oct. 12 to pay the imposed fine.
PCC, the country’s anti-trust body, reviews mergers and acquisitions under the Philippine Competition Act of 2015. — Jenina P. Ibañez
