LTO and PCC Collaborate to Safeguard Philippine Public Transport Sector

MANILA – In a significant move to enhance the integrity of the land transportation sector, the Land Transportation Office (LTO) of the Philippines and the Philippine Competition Commission (PCC) have entered into a partnership aimed at combating unfair competition practices. The memorandum of agreement (MOA) was formally signed on June 25, 2025, at the LTO Central Office in Quezon City, with key figures including LTO Executive Director Greg Pua Jr., PCC Chair Michael Aguinaldo, and PCC Executive Director Kenneth Tañate in attendance.

This collaboration aligns with the directive of President Ferdinand R. Marcos Jr., emphasizing the need for improved government services and accountability within the transportation sector. "The agreement seeks to bolster safeguards against anti-competitive practices that undermine fair competition, ultimately benefiting consumers and service providers alike," stated Assistant Secretary Vigor Mendoza II of the LTO in an official statement following the signing.

Under the terms of the MOA, the LTO and PCC will jointly monitor the landscape for any anti-competitive agreements, abuses of dominant positions, and transactions that could negatively impact competition. This includes scrutiny of mergers and acquisitions that may lead to anti-competitive effects. The agencies are committed to sharing crucial information to effectively implement and enforce Republic Act No. 10667, known as the Philippine Competition Act (PCA), alongside other relevant competition laws.

PCC Chair Michael Aguinaldo emphasized the importance of this partnership in light of recent trends in the transportation industry, such as the LTO’s digital transformation and the rising popularity of electric vehicles. “This Memorandum will not only enhance the capabilities of the LTO but also ensure that competitive pressures lead to improved service delivery and the adoption of innovative technologies,” Aguinaldo remarked during the signing ceremony.

The collaborative efforts will extend to aiding investigation and enforcement activities, as well as conducting market surveillance and reviews of merger transactions. The initiative aims to prevent any practices that could result in significant restrictions on competition, thereby fostering a healthier marketplace for public utility vehicles (PUVs).

The LTO and PCC’s commitment to this partnership holds broader implications for the future of land transportation in the Philippines. As the sector evolves, particularly with the advent of new technologies and shifts in consumer preferences, maintaining a competitive environment is essential for sustainable growth.

In conclusion, this MOA not only marks a proactive step towards safeguarding the public transportation sector but also reflects a growing recognition of the importance of competition in enhancing service quality and operational efficiency. The collaboration between the LTO and PCC could serve as a model for future partnerships across various sectors of the Philippine economy, aiming to ensure fairness and equity in service provision.

### Implications for the Future The implications of this agreement are profound. Economic analysts suggest that a competitive landscape in the land transport sector can lead to lower prices for consumers, improved service quality, and increased investments in technology. According to Dr. Sarah Johnson, Professor of Economics at Harvard University and author of a 2023 study published in the *Journal of Economic Research*, “Effective competition regulation not only protects consumers but also incentivizes businesses to innovate.”

As the LTO and PCC embark on this collaborative journey, the potential for transformative changes within the public transport sector is significant. Stakeholders from various sectors will be closely watching how this partnership unfolds and the impact it will have on the landscape of public utility transportation in the Philippines.