ANTITRUST regulators have approved a planned merger by subsidiaries of Mitsui & Co. Ltd and KDDI Corp., ruling that the deal would not restrict competition in the relevant market.

Mitsui subsidiary Relia Inc. will be merged with KDDI unit KDDI Evolva, which will be the surviving entity.

"After thorough assessment, it found that the transaction between Mitsui subsidiary Relia, Inc. and KDDI subsidiary KDDI Evolva will not likely result in a substantial lessening, restriction, or prevention of competition in the relevant market," the Philippine Competition Commission (PCC) said in an April 13, 2023 decision.

The joint venture aims to leverage Mitsui Relia's expertise in business process outsourcing services and KDDI's efficiency in ICT solutions to provide innovative digital solutions, particularly in areas like contact center services and IT solutions.

The PCC said that key considerations in its approval included significant competitive pressure in the market, the availability of other options for consumers, and low barriers to entry and expansion for other businesses.

It also said that it had determined the "provision of Secure Access Service Edge (SASE) for integrated network solutions on a global scale as the relevant market being assessed in the transaction."

"As a modern way of keeping networks safe and connected, it uses security tools like firewalls and networking technology to let people access applications and data securely from anywhere on any device," it added.

"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."

Under the Philippine Competition Act, the PCC is mandated to promote a competitive business landscape by ensuring that mergers and acquisitions enhance market efficiency and consumer welfare.