Regional Competition Bites Q3 2024

Dear Friends,

We are pleased to present our 3^rd Regional Competition Bites for 2024. The third quarter has seen much activity on the part of competition regulators throughout Southeast Asia, including numerous instances of enforcement action, merger reviews, and development of competition legislation, regulation and policy.

In the area of enforcement, regulators have demonstrated strong initiative in pursuing potential breaches of competition law, not just in terms of the number of enforcement cases, but also in terms of the scope of breaches targeted and the range of investigative powers utilised. In Indonesia, the Indonesia Competition Commission has pursued enforcement at a number of levels, including preliminary investigations into breaches of reporting obligations by a national airline, as well as stakeholder discussions on a new entry into the internet service provider market. In Malaysia, the focus of the Malaysia Competition Commission remains squarely on cartel activity, with decisions issued against bid-rigging and price-fixing cartels, supported by the upholding of similar decisions by the Malaysian courts. In Myanmar, the Myanmar Competition Commission has established a notable precedent, determining a case on deceptive branding and misleading of customers, indicating a willingness to tackle breaches outside of traditional competition concerns. In the Philippines, combatting cartel activity continues, with the Philippine Competition Commission conducting its first dawn raid in an investigation into cartel conduct between vegetable traders. In Singapore, the Competition and Consumer Commission of Singapore also set new precedent, issuing its first infringement decision against a former director in his individual capacity involved in bid-rigging. In Thailand, the Trade Competition Commission of Thailand has announced that it will be putting in place enforcement measures to combat the issue of the importation and distribution of substandard, low-priced goods from foreign countries into Thailand.

On the merger front, the uptick of merger and acquisition activities has led to corresponding increases in merger notification, which has in turn seen greater activity in terms of merger decisions by competition regulators. In Singapore, approval was granted in a proposed commercial cooperation between airlines and a share acquisition for companies in the steel industry; conversely, a provisional decision that a proposed acquisition in the ride-hail platform market would likely result in a substantial lessening of competition was swiftly followed by the withdrawal of the proposed acquisition. In Indonesia, the Indonesia Competition Commission set a groundbreaking precedent, issuing its first conditional approval for an acquisition of shares under the 2023 Merger Regulation, as well as imposing extensive fines for the late filing of transactions. In the Philippines, the publishing of the Guideline on Merger Remedies now provides greater clarity on the regulatory approach to assessing proposed merger remedies. In Vietnam, the trend of merger approvals continued with the conditional approval of an economic concentration in the soybean and oilseeds products industries.

In the area of policy and regulation, there has been much development in the region. In Indonesia, the Indonesia Competition Commission is undergoing institutional transformation, resulting in the issuance of regulations which formalise the status of its secretariat and delineates its responsibilities. In Myanmar, the Myanmar Competition Commission is continuing the development of the Competition Law by holding a meeting to discuss the drafting of procedures necessary for its effective implementation. In Thailand, the Trade Competition Act B.E. 2560 (2017) is being revised, for which studies are being undertaken, and focus groups and subcommittees being set up, to consult on the proposed amendments. There has also been a new regulation introduced specifically to regulate e-commerce transactions using cash on delivery. In Vietnam, new competition-related laws are also in the works, with draft revisions to the laws regulating the operation of the competitive wholesale electricity market, as well as new laws introduced to enhance regulation of companies and consumer protection in Vietnam’s e-commerce sector.

These developments reflect the continued advancement of competition law in the region, both in terms of legislative and regulatory framework, as well as the practical enforcement and investigative measures undertaken by competition regulators. The growth of competition activity also demonstrates the rise of opportunities in the market for businesses operating and investing in Southeast Asia.

Finally, the Rajah & Tann Asia Competition & Antitrust Team hosted its 11^th Regional Competition Conference in Kuala Lumpur, Malaysia. The event featured our practitioners from across our various offices, who examined various competition and trade issues from the perspective of their jurisdiction. The topics discussed included cartel enforcement, abuse of dominance and vertical restraints and merger control across the Southeast Asian countries. The Team also discussed trade issues including Trade, Tech, and Trust: Navigating E-Commerce, Consumer Protection, and Competition in ASEAN and Unlocking South East Asia’s Trade Potential: Regulations, Opportunities, and Challenges.

The Conference was very well attended by clients and friends of the Firm, some even flying into Kuala Lumpur to attend the same.

The Conference has become a pinnacle event in the calendar of the Competition & Antitrust Team and has travelled across Southeast Asia. It not only brings together clients of the Firm, but also the over 20 partners and a fair number of associates, to spend a day or two discussing nothing but competition and trade issues. We will keep you apprised of the next one for 2025 in due course.

The Rajah & Tann Asia Competition & Antitrust Team remains committed to staying abreast of the dynamic landscape of competition law in the region and stands ready to assist. Please reach out to us if you wish to further discuss these developments.