Competition policy shall remain in place to ensure an inclusive digital economy amid the accelerated digital shift caused by the pandemic.
Philippine Competition Commission (PCC) chairman Arsenio Balisacan said micro and small enterprises are faced with challenges of competing in the digital economy, as it is still dominated by established large enterprises.
“MSMEs (micro, small and medium enterprises) and the poor suffered unequal access to digital platforms due primarily to poor connectivity. For example, penetration of high-speed broadband connection is low primarily because of unstable, slow, and expensive internet connection,” he said.
Balisacan added 60 percent of households in the Philippines do not have access to the internet. There is also a low penetration to high-speed broadband connection. In terms of penetration to high-speed connection, the Philippines is lagging among its Southeast Asian neighbors, he said.
“The future of this market, the online platform, is that first-mover advantage is the key,” he added. Since established enterprises still dominate the digital market, the innovators, or the new entrants, will face the challenge of acquiring a sufficient scale of the market.