MANILA - The Philippine Competition Commission (PCC) said Monday it fined the contract manufacturer of Chinese tech brands Huawei and Xiaomi for failing to promptly notify the body of its takeover of another firm, the PCC said Monday.
Chinese manufacturer Wingtech Technology, Co. Ltd and Dutch semiconductor firm Nexperia Holding B.V, which it acquired, were fined P716,150 for the late notification of the deal.
The takeover was valued at P14.3 billion, the PCC said, which meant the competition watchdog had to be quickly notified of the deal.
Wingtech is a contract manufacturer of smartphone giants Huawei Technologies and Xiaomi Corp, while Nexperia is a vendor of semiconductors used in mobile devices, cars, and other electronic products.
The Chinese firm acquired the assets of the Dutch company in October 2018 but the firms only notified the PCC on May 6 this year or 194 days after the signing of their agreement, the PCC said.
"Based on the PCC Rules on Mergers Review, parties whose transactions meet the thresholds are mandated to notify the antitrust commission within 30 days from execution of their definitive agreement," the PCC said.
Despite the fine, the PCC cleared the merger saying it posed "no substantial lessening of competition in the smartphone manufacturing market."