Sangalang, Carmina Marie M.

Atty. Katrine Paula V. Suyat

1- J

August 15, 2015

Philippine Competition Law

Every business enterprise aims to gain success, this is not only true in the case of the
Philippines but also with other countries over the world. A competition policy that guards
business environment against unwanted business behavior therefore becomes essential in every
business whose aim is to garner success in a just and competent manner.
The meaning and ways of competition varies differently among lawmakers, theorists and
businessmen themselves although it is well to note that there is an existing common notion of its
economic theory and practice that are generally acknowledged. A wide range of the history of
economic thought has indeed resulted to competing views about the meaning of competition.
These competing views of competition, in turn, have profound implications for the ways in
which enterprises in the public and private sectors are perceived to contribute to development,
and for the development of public policy approached towards them. 1
Philippine economic policies during the 1970s and 1980s were largely directed towards
the inward looking protection trade regime and an industrial structure characterized by high
levels of market concentration. It resulted to the low number of economic rents, an economic
growth characterized by low multifactor productivity, and an unequal distribution of wealth. 2
It is only after decades worth of attempts that the Philippines has gone its way in
enacting its first comprehensive competition law. It is a legislation that aims to protect local
businesses and to build a vibrant and more competitive economy by putting an end to anticompetitive agreements, cartels, collusions, and unfair and abusive practices.
The newly enacted Republic Act. No. 10667 or also known as The Fair Competition Act
of 2014 or Philippine Competition Act was principally authored by Senator Paolo Benigno
Aquino IV, the youngest senator of the 16th Congress and a renowned social entrepreneur. The
said law aims a well-maintained environment and opportunities for all to compete pointing out
the up and coming challengers in the market as well as those enterprises which is already
regarded as market leaders. Players in a competition help improved quality products or services,
lower prices, offer consumers a variety of choices or even break the next trend of innovation in
the market.
The Philippine Competition Act shall not only be enforceable against any person or
entity engaged in any trade, industry and commerce in the Philippines but also to international
trade having direct, substantial, and reasonably foreseeable effects in trade, industry or
commerce of the Philippines including those that result from the acts done outside the country.
3
Moreover, it punishes and imposes penalties on entities that exhibit anti-competitive agreement,
1 (Kirkpatrick, Minogue, Parker, & Cook, 2004)
2 (Abon, 2004)
3 (Section 3, Republic Act No. 10667)

cartel-like actions and abuses in dominant position. A business that is playing fair therefore has
nothing to fear. The enactment of the bill seeks to protect fair and legitimate business practices
and punish abuses in the market to achieve greater economic efficiency.
An independent quasi-judicial body to be called Philippine Competition Commission or
PCC is created to implement the competition policy and attain the objectives and purposes of the
act. The Commission will primarily look into anti-competitive behavior, abuses in dominant
positions, and anti-competitive mergers and acquisitions.4
The enactment of the Philippine Competition Act will basically give rise to specific
provisions regarding competition of market in the Philippines that were considered vague in the
previous times. Thus, it strengthens the basic law addressing anti-competitive behavior, which is
Article 186 of the Revised Penal Code that defines and penalizes monopolies and combinations
in restraint of trade and provides penalties such as imprisonment, a fine, or both. 5
On the other hand, the Civil Code of the Philippines allows the collection of damages
arising from unfair competition in agricultural, commercial, or industrial enterprises. The
definition provided in the newly enacted law will now be able to delimit what can be considered
unfair competition and will aid the merely proceeds of the enumerated methods by which unfair
competition can be committed that are provided the Civil Code
The most pivotal advantage that the Competition Act of the Philippines will bring is
towards the consumers since their choices in the market will not be limited. A wide array of
options will surely display because different players in the market will want to make its brand
stand out amongst the others. Cheaper prices will be offered to the market. Furthermore,
competition between enterprises will help flourish the countrys economy.
Such will be an endorsement of the vital role that competition plays in the process of
development of ones country. Competition policy is now rapidly being adopted in a whole
range of developing economies with the encouragement of the international development
institutions.
Recent years have seen a movement away from the state ownership towards more
reliance on private markets to supply goods and services, including goods and services
traditionally supplied by the state, such as telecommunications, water and electricity. These
markets can be competitive, highly oligopolistic or even monopolistic. Where privatization is
associated with the creation of private monopoly then some form of continued state regulation is
required to protect consumers from monopoly abuse. In cases where markets are oligopolistic or
even competitive, state regulation may still be necessary to prevent the abuse of dominant
position, the creation of cartels, and in other ways to protect consumers through developing an
effective competition policy. Moreover, state regulation is also adopted internationally to protect
society in the form of the regulation of working conditions, product quality, the environment,
health, safety and the like.
4 (Section 5, Republic Act No. 10667)
5 (Asian Competition Policy and Law)

A free market doesnt necessarily mean that a business can already do whatever it wants,
rules and regulations still exist to facilitate trade of goods and services. The Competition Law
provides framework where free market players can compete fairly for their share in the market
thus encouraging more players in the long run. It uplifts new players by ensuring to safeguard
them from the predatory behavior that kills of competition in the market. Moreover, it will
greatly empower the consumers with more options in the market. More players in the market will
likely to make business compete for peoples preference thus resulting a decrease in prices not to
mention the fact that it will also prevent the consumers from buying goods or services at a
dictated price because of monopolies.

Bibliography
Abon, E. (2004). State of Play of Competition Policy in the Philippines.
Aquino, B. (2015, May 20). Rappler. Retrieved August 13, 2015, from Towards fair competition,
healthier economy: http://www.rappler.com/thought-leaders/93566-fair-competition-economy
Asian Competition Policy and Law. (n.d.). Retrieved August 13, 2015, from Asian Competition
Policy and Law: http://www.aseancompetition.org/aegc/aegc-members/philippines
Kirkpatrick, C., Minogue, M., Parker, D., & Cook, P. (2004). Leading Issues in Competition,
Regulation, and Development. Edward Elgar Publishing.
Schnabel, C. (2015, July 10). Rappler. Retrieved August 13, 2015, from What consumers need to
know about the PH Competition Ac: http://www.rappler.com/business/97895-rappler-talk-bamaquino-fair-competition-bill
Republic Act No. 10667.