NOV.

25, 2012

NR # 2934B

Law to prevent monopolies, promote fair business competition nears passage The proposed Philippine Fair Competition Act which seeks to penalize all forms of unfair trade, anti-competitive conduct and combinations in restraint of trade is nearing 2nd reading approval by the House of Representatives. The proposed Act contained in HB 4835, a consolidation of twelve separate measures, is authored and co-authored by 76 lawmakers including Speaker Feliciano Belmonte, Jr., Deputy Speaker Lorenzo Taada III 4th District, Quezon), Reps. Antonio Alvarez (1st District, Palawan), Tomas Apacible V (1st District, Batangas), Juan Ponce Enrile, Jr. (1st District, Cagayan), Gloria Macapagal-Arroyo (2nd District, Pampanga), Diosdado Macapagal Arroyo (2nd District, Camarines Sur), Susan Yap (2nd District, Tartlac), Carlo Alexei Nograles (1st District, Davao City), Jerry Treas (Lone District, Iloilo City); and Jose Carlos Cari (5th District, Leyte), among others. The proposed law, the authors said, seeks to prevent the concentration of economic power in a few persons who threaten to control the production, trade, or industry in order to stifle competition, distort, manipulate or constrict the discipline of free markets and increase market prices. HB 4835, now in the period of interpellation, is being sponsored and defended in plenary jointly by Trade and Industry committee chairman Albert Raymond Garcia, and Committee on Economic Affairs chair Rep. Ramon Durano and the Committee on Appropriations now chaired by Rep. Jocelyn Limkaichong. The measure establishes the Philippine Fair Commission (PFCC), an independent body which shall have original and exclusive jurisdiction to enforce and implement the administrative provisions of the Act. The Commission shall be composed of a chairperson and four (4) Associate Commissioners, all shall be appointed by the President. The chairperson and the Associate Commissioners shall have a term of six (6) years without reappointment. The commission shall have the power to, among others, issue binding rulings, show cause orders, and thereafter, render decision thereon, approve, or disapprove, proposals for consent judgment, conduct the required preliminary inquiry of cases involving violations of this Act and other competition laws. Likewise, if appropriate, the commission may sign and file the proper criminal complaint before the Department of Justice, and impose the appropriate administrative fines or penalties.

HB 4835 imposes a fine of not less than P10-million and not exceeding P50-million if the violator is a natural person; a fine of not less than P250-million but not more than P750-million if the violator is a firm, at the discretion of the Commission. The proposed statute prohibits mergers, consolidations or asset acquisition where the effect of such may be to substantially lessen competition, or tend to create a monopoly. Nevertheless, it also identifies instances where stock or asset acquisition or ownership shall be permissible under conditions set by the Act. The co-authors of the bill are Reps. Marcelino Teodoro; Maximo Rodriguez and Rufus Rodriguez; Florencio Miraflores; Anthony Golez, Jr.; Alfredo Benitez, Reynaldo Umali; Czarina Umali; Eduardo Gullas; Joel Roy Duavit; Arthur Defensor, Jr.; Teddy Casio; Linabelle Villarica; Hermilando Mandanas; Danilo Ramon Fernandez; Josephine Lacson-Noel; Isidro Rodriguez; Florencio Garay; Anthony del Rosario; Jesus Sacdalan; Josefina Joson; and Teodorico Haresco, Jr. (30) dpt