Committee on Appropriations approves National Competition Policy Bill

The House Committee on Appropriations has approved a proposal seeking to create a National
Competition Policy for the Philippines, which prohibits anti-competitive agreements or conduct, abuse of
dominant position, anti-competitive mergers and acuisitions, and other unfair trade or business practices!
The committee chaired by "ep! #sidro $ngab %&
rd
'istrict, 'avao City( approved yesterday the
substitute bill to )) proposals, one of which was H* ))&& authored by +peaker ,eliciano *elmonte, -r!
The +peaker said having a National Competition Policy will encourage fair and free economic
competition by prohibiting the abuse of market dominant positions and the e.cessive concentration of
economic power by regulating improper concerted acts and unfair business practices, thereby stimulating
creative business activities, protecting consumers and promoting the balanced development of the
national economy!
#n November /001, the +peaker said the leaders of the Association of +outheast Asian Nations
%A+2AN( adopted the A+2AN 2conomic Community %A2C( *lueprint, which each A+2AN 3ember
Country shall abide by, and implement by /0)4! The A2C *lueprint will transform the A+2AN into a
single market and production base, a highly competitive region of euitable and economic development,
and a region fully integrated into the global economy!
5As outlined in the A2C *lueprint, all A+2AN 3ember +tates, including the Philippines, will
endeavor to introduce competition policy by /0)4,6 the +peaker said!
+peaker *elmonte recalled that in his first +tate of the Nation Address %+7NA( in -uly /0)0,
President Auino called for the enactment of an anti-trust law to promote fair competition and provide
opportunities for small and medium scale enterprises to participate and contribute to economic growth!
5A level playing field is essential for inclusive growth and development,6 said the +peaker!
3eanwhile, in his speech during the opening of the +econd "egular +ession last -uly /8, the
+peaker said the bills on national competition policy are among the priority measures of Congress that
seek to boost the country9s economy and promote the inflow of investments!
*elmonte said a national competition policy will 5unify, codify, update, and streamline all
legislation and regulations affecting competition in the country!6
#n its 'eclaration of Policy, the 5Philippine Competition Act6 substitute bill provides that the
proposal is pursuant to the constitutional mandate that the +tate shall regulate or prohibit monopolies
when the public interest so reuires and that no combinations in restraint of trade or unfair competition
shall be allowed!
The bill provides for the creation of a Philippine Competition Commission to be under the 7ffice
of the President and shall implement the National Competition Policy! #t shall be composed of a
Chairperson and four Associate Commissioners!
The bill prohibits agreements or conduct, between or among competitors, such as: restricting
competition as to price, or components thereof, or other terms of trade; setting, limiting, or controlling
production, markets, technical development, or investment; dividing or sharing the market, whether by
volume of sales or purchases, territory, type of goods or services, buyers or sellers or any other means;
NR # 3634C
OCT. 29, 2014
fi.ing price at an auction or in any form of bidding including cover bidding, bid suppression, bid rotation
and market allocation and other analogous practices of bid manipulation; and applying dissimilar
conditions to euivalent transactions with other parties thereby placing them at a competitive
disadvantage!
The measure also prohibits one or more entities to abuse a dominant position by engaging in
conduct that would unreasonably prevent or restrict a c competition in the relevant market!
<ikewise, it prohibits all unfair methods of competition as well as unfair deceptive trade or
business practice which have the ob=ect or effect of unreasonably and substantially preventing, restricting
or lessening competition!
2.amples of these prohibited acts are: distribution of false or misleading information which is
capable of harming the business interests of another entity; failure to disclose matters relevant to
franchises and other business opportunities offered to consumers such as investment reuirements,
training, sales potential, and average earnings; and unauthori>ed use, or dissemination of confidential
scientific or technical production, business or trade information!
The bill also provides for review of mergers and acuisitions by the Commission such as: two
entities combine into one; one entity takes control of the whole part of another; two or more entities
acuire control over another entity; and other transaction whereby one or more entities acuire control
over one or more entities!
#t also provides for administrative and criminal penalties for erring persons and entities! ,or those
who fail or neglect to comply with any term or condition of a binding ruling, a cease and desist order or
an order for read=ustment issued by the Commission, they shall pay a fine of P40,000 to P/00,000 for
each violation! ,or those who supply incorrect or misleading information filed with or submitted to the
Commission, they shall pay a fine of P4,000 to P)00,000! An entity that enters into any anti-competitive
agreement or conduct shall, for each and every violation, be penali>ed by imprisonment of five to ten
years, or a fine up to )0 percent of the annual turnover of the infringed during the previous fiscal year or
up to ) percent of the value of the assets of the infringed, whichever is higher, or both imprisonment and
fine!
The substitute bill is a consolidation of the following proposals: H* /)) by authored by "ep!
+alvacion ?+ally9 +! Ponce-2nrile %)
st
'istrict, Cagayan( , H* &88 by "ep! "ufus *! "odrigue> %/
nd
'istrict, Cagayan de 7ro City(, H* @4& by "ep! 3arcelino "! Teodoro %)
st
'istrict, 3arikina City(, H*
))&& by +peaker ,eliciano "! *elmonte, -r! %@
th
'istrict, Aue>on City(, H* )/8) by "ep! "eynaldo $mali
%/
nd
'istrict, 7riental 3indoro(, H* /B1/ by "ep! 'iosdado 3acapagal Arroyo %/
nd
'istrict, Camarines
+ur(, H* &&BB by "ep! Teodorico T! Haresco, -r! %<one 'istrict, Aklan(, H* @0C0 "ep! Niel C! Tupas, -r!
%4
th
'istrict, #loilo(, H* @&/0 by 'eputy +peaker +ergio A! ,! Apostol %/
nd
'istrict, <eyte(, H* @&@B by
"ep! Anthony D! del "osario %)
st
'istrict, 'avao del Norte(,and H* @@@B by 'eputy +peaker Diorgidi *!
Aggabao %@
th
'istrict, #sabela(!
The measures were previously referred to the House Committee on 2conomic Affairs chaired by
"ep! 2nriue 3! Co=uangco %)
st
'istrict, Tarlac( and Committee on Trade and #ndustry chaired by "ep!
3ark A! Eillar %<one 'istrict, <as PiFas City(! %&0( rbb