THE Philippine Competition Commission (PCC) on Monday said the proposed joint venture (JV) between Mitsui & Co., Ltd. and KDDI Corp. subsidiaries does not pose a competition threat in the relevant market.
The joint venture between Mitsui’s Relia, Inc. and KDDI’s KDDI Evolva will not result in “substantial lessening, restriction, or prevention of competition in the relevant market,” the PCC said in a statement, citing a decision dated April 13, 2023.
If realized, the joint venture will result in the merger of Relia and KDDI Evolva, with KDDI Evolva as the surviving entity.
Relia specializes in business process outsourcing services, while KDDI Evolva offers information and communications technology solutions.
“The joint venture aims to combine Mitsui’s strategic capabilities with KDDI’s telecommunications expertise, focusing on digital solutions and innovation in areas such as contact center services and IT solutions through KDDI Evolva, the resulting entity,” the PCC said.
The PCC said that it has assessed the provision of Secure Access Service Edge (SASE) for integrated network solutions on a global scale as the relevant market for the transaction.
This solution, the PCC said, keeps networks safe and connected by using security tools like firewalls and networking technology to let people access applications and data securely anywhere.
“While there is a vertical relationship between the parties involving the resale of SASE licenses, this relationship does not significantly impact competition due to the presence of alternative providers and services in the market,” the PCC added.
Under the Philippine Competition Act, the PCC is mandated to review mergers and acquisitions to ensure fair market competition. — Justine Irish D. Tabile
