Building a Business Empire with my Technological System

382  The PCC Hearing Part 1 Nôv(el)B\\jnn

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

The lead commissioner, 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-black hair nodded briefly. "Commissioner Adela Bayani, focusing on economic impact and market regulation."

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

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

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, particularly its acquisitions, have violated 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 glanced 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 Villarosa cleared his throat and leaned forward.

"Mr. Reyes, explain 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 accessible, secure, and innovative. We saw the opportunity to expand financial services to millions of Filipinos, especially those underserved by traditional banks."

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

Michael maintained his composure, though he knew this was a deliberate attempt to frame the acquisition as anti-competitive. "GCash was successful, 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 platform alone couldn't have achieved without significant investment."

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

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

"Okay... how about Cherry Mobile?" Commissioner Villarosa 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 smartphone company. But more importantly, Cherry Mobile was facing significant challenges before we stepped in. The business was struggling to keep up with global competitors in terms of technology and innovation. They were losing market share and risked going under."

Commissioner Villarosa raised an eyebrow. "You're saying they were failing?"

"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 it compete in an industry dominated by global players."

Commissioner Bayani leaned in, her expression skeptical. "But by acquiring them, didn't you effectively eliminate competition 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 at competitive prices. Not to mention the fact that we got recognized internationally that the Philippines could produce new high-tech smartphones that can compete 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 struggling company—we turned it into a symbol of Filipino ingenuity in technology. Instead of reducing competition, we've pushed the boundaries of what local tech companies can achieve."

Commissioner Bayani leaned back slightly, considering his words, but still seemed unconvinced. "But with fewer local players 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 of competitors in the market—local and international. Even with Cherry Mobile, we operate in a highly competitive space. What we've done is give the Filipino consumer better options, and as a result, the competition has had to step up their game. Prices have remained competitive, and consumers are benefiting from a broader range of affordable high-tech smartphones."

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

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

Villarosa 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 the law regarding anti-competitive 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 many components. We haven't vertically integrated to the point of controlling every step of production."

"Haven't?" Commissioner Villarosa 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 play 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 eliminate competition."