Professional Documents
Culture Documents
14, 2013
NR # 3256
Meanwhile, he said President Aquino in his first State of the Nation Address (SONA) in July 2010, called for an anti-trust law to promote fair competition and contribute to economic growth. A level playing field is essential for inclusive growth and development, said the Speaker. House Bill 1133 provides for the creation of a Philippine Fair Trade Commission (PFTC) to be under the Office of the President and which shall investigate, gather evidence and initiate prosecution of those engaged in unfair trade practices. It shall also look into the description of cartels and monopolies, and impose defined sanctions and penalties for violation of the Fair Competition Act. The bill also mandates that the exercise of regulatory powers by different government agencies, including local government units (LGUs), over an industry or subsector thereof shall be cumulative and shall not be construed in any way as derogating from the power and authority of the concerned agency. Hence, while the PFTC shall have primary and sole jurisdiction over competition issues, the regulatory bodies shall continue to exercise jurisdiction over all matters with regard to the firms operation and exercise. The bill provides it shall be unlawful for firms to engage in anti-competitive acts that prevent, distort, or restrict competition unless otherwise exempted. These prohibited acts shall include price fixing and bid rigging. Likewise, the bill provides it shall be unlawful for one or more firms to abuse their dominant position by engaging in unfair methods of competition, or in unfair or deceptive trade practices, or entering into combinations in the form of trust or otherwise, or conspiracy, with the purpose and effect to prevent, restrict or distort competition. Among these prohibited acts shall be: predatory behavior towards competitors; limitation and control of markets; market allocation; arrangements to share markets or sources of supply; price discrimination; exclusivity arrangement; tie-in arrangements; and boycott. The measure also prohibits anti-competitive mergers. It provides that no firm engaged in commerce or trade shall acquire, directly or indirectly, the whole or any part of the stock or other share capital, or the whole or any part of the assets, of one or more firms engaged in any line of commerce or trade where the effect of such acquisition of such stocks, share capital, or assets, or of the use of such stock by voting or granting of proxies or otherwise maybe to substantially lessen competition, or tend to create a monopoly. The bill offers a leniency program to any person or firm that shall cooperate or furnish any information, document or data to the PFTC before or during the conduct of the preliminary inquiry that constitutes material evidence as determined by the Commission. (30) rbb