382 The PCC Hearing Part 1


    Michael braced himself as themissioners began to introduce themselves, one by one. These were the people who would determine the future of hispany, and he knew they wouldn''t go easy on him.


    The leadmissioner, the older man with the graying hair, leaned into the microphone. "I am Commissioner Aurelio San Pedro, Chair of this panel. Let me introduce my colleagues."


    Next to him, a woman with a stern expression and short, jet-ck hair nodded briefly. "Commissioner Ad Bayani, focusing on economic impact and market regtion."


    To her right, a younger man with a meticulously groomed beard introduced himself with a calm but sharp demeanor. "Commissioner Dante Virosa, specializing in technology and corporate acquisitions."


    Finally, themissioner sitting farthest to the left, a serious-looking man with salt-and-pepper hair and sses, added, "Commissioner Tomas Alcaraz, in charge of consumer protection andpetitionw."


    Michael gave each of them a slight nod of acknowledgment as they introduced themselves. This was the team he''d be facing. He knew their areas of expertise, but there was no predicting the twists they might introduce during the questioning.


    Aurelio San Pedro spoke again, his tone even but firm. "Mr. Reyes, as you are aware, this investigation is focused on determining whether Reyes Corporation''s market practices, particrly its acquisitions, have vited any aspects of the Philippine Competition Act. We will begin with your acquisition of Gcash, as we believe it to be pivotal in this matter."


    Michael nced briefly at Luis, who remained calm, though he could sense a hint of tension. This was expected. He had prepared for it. But as Commissioner Virosa cleared his throat and leaned forward.


    "Mr. Reyes, exin to us why you acquired Gcash?" Michael took a deep breath, preparing himself for what would likely be the first of many tough questions. He had anticipated this one but knew they would press hard for details.


    "To serve as the foundation for our new digital banking enterprise," Michael began, his voice steady but authoritative. "The acquisition of GCash allowed Reyes Corporation to create an integrated digital banking ecosystem that is essible, secure, and innovative. We saw the opportunity to expand financial services to millions of Filipinos, especially those underserved by traditional banks."


    Commissioner Virosa nodded but didn''t seem entirely satisfied. "That''s a well-prepared response, Mr. Reyes. But wasn''t GCash already sessful before your acquisition? Some might argue you acquired an established tform purely to gain market dominance rather than innovation. Why not build your own tform from the ground up?"


    Michael maintained hisposure, though he knew this was a deliberate attempt to frame the acquisition as antipetitive. "GCash was sessful, yes, but it had limitations. By integrating GCash with our resources, we''ve been able to introduce new features, including AI-driven financial advice, more secure digital wallets, and faster payment processing. These are things that the tform alone couldn''t have achieved without significant investment."


    Virosa leaned back slightly, his expression unreadable. "So you''re iming that without Reyes Corporation, GCash wouldn''t have evolved at the same pace?"


    "That''s correct," Michael replied confidently. "Our involvement has elerated its growth. And more importantly, it''s given more Filipinos ess to banking services they didn''t have before."


    "Okay... how about Cherry Mobile?" Commissioner Virosa continued, leaning forward again. "You acquired them for your new smartphone venture, correct? Some would say this was another strategic move to consolidate market power rather than foster innovation. How do you respond to that?"


    "Yes, we acquired Cherry Mobile simply because it is synonymous with the Filipino people. We all know what Cherry Mobile is. A Philippine smartphonepany. But more importantly, Cherry Mobile was facing significant challenges before we stepped in. The business was struggling to keep up with globalpetitors in terms of technology and innovation. They were losing market share and risked going under."


    Commissioner Virosa raised an eyebrow. "You''re saying they were failing?" @@novelbin@@


    "Yes," Michael replied confidently. "They were in a position where they needed saving. Their production capabilities were outdated, and their technology wasn''t advancing fast enough to meet the needs of an increasingly tech-savvy market. Without new investment and resources, Cherry Mobile would not have survived much longer. We saw an opportunity to revive the brand and help itpete in an industry dominated by global yers."


    Commissioner Bayani leaned in, her expression skeptical. "But by acquiring them, didn''t you effectively eliminatepetition in the low-cost smartphone market?"


    Michael shook his head. "On the contrary. By acquiring Cherry Mobile, we preserved jobs, increased production efficiency, and introduced new models atpetitive prices. Not to mention the fact that we got recognized internationally that the Philippines could produce new high-tech smartphones that canpete with Apple, Samsung, and other global brands."


    Michael continued. "The acquisition allowed Cherry Mobile to innovate faster than they could have on their own. We didn''t just save a strugglingpany—we turned it into a symbol of Filipino ingenuity in technology. Instead of reducingpetition, we''ve pushed the boundaries of what local techpanies can achieve."


    Commissioner Bayani leaned back slightly, considering his words, but still seemed unconvinced. "But with fewer local yers in the low-cost smartphone market, isn''t there a risk of you gaining too much control over that sector?"


    15:15


    Michael anticipated this line of questioning. "There are still plenty ofpetitors in the market—local and international. Even with Cherry Mobile, we operate in a highlypetitive space. What we''ve done is give the Filipino consumer better options, and as a result, thepetition has had to step up their game. Prices have remainedpetitive, and consumers are benefiting from a broader range of affordable high-tech smartphones."


    Commissioner Virosa interjected, tapping his pen thoughtfully. "Let me get this straight—you''re iming that thepetition is still thriving despite the fact that Reyes Corporation is effectively in different enterprises?"


    Michael met Commissioner Virosa''s gaze, carefully considering his next words. "Yes, that''s correct. Reyes Corporation operates in multiple sectors, but in each, we ensure there is healthypetition. We don''t dominate markets by stiflingpetition—wepete by providing better products and services."


    Virosa continued, "But given your presence in key industries—banking, technology, energy, transportation, pharmaceutical, medical technology… how do you respond to concerns that your vertical integration could allow you to control too many aspects of the supply chain?"


    Michael remained calm. "We''ve always followed thew regarding antipetitive behavior. In every acquisition, we focus on improving the business, not controlling the entire supply chain. For example, with Cherry Mobile, we improved their technology and made their operations more efficient, but they still rely on third-party suppliers for manyponents. We haven''t vertically integrated to the point of controlling every step of production."


    "Haven''t?" Commissioner Virosa leaned forward, his tone sharp. "So you admit that vertical integration is part of your long-term strategy, potentially giving you leverage over multiple industries?"


    "I would be mindful to y with words here, Commissioner," Michael said. "Vertical integration in some areas is a natural progression for businesses that aim to improve efficiency. But Reyes Corporation has always ensured that even where we vertically integrate, we don''t eliminatepetition."