ARTICLE XII

SECTION 19
ARTICLE XII SECTION 19
THE STATE SHALL REGULATE OR PROHIBIT
MONOPOLIES WHEN THE PUBLIC INTEREST SO
REQUIRES. NO COMBINATIONS IN RESTRAINT OF
TRADE OR UNFAIR COMPETITION SHALL BE
ALLOWED
ARTICLE XII SECTION 19
THE STATE SHALL REGULATE OR PROHIBIT
MONOPOLIES WHEN THE PUBLIC INTEREST SO
REQUIRES. NO COMBINATIONS IN RESTRAINT OF
TRADE OR UNFAIR COMPETITION SHALL BE
ALLOWED
ARTICLE XII SECTION 19
THE STATE SHALL REGULATE OR PROHIBIT
MONOPOLIES WHEN THE PUBLIC INTEREST SO
REQUIRES. NO COMBINATIONS IN RESTRAINT OF
TRADE OR UNFAIR COMPETITION SHALL BE
ALLOWED
ARTICLE XII SECTION 19
THE STATE SHALL REGULATE OR PROHIBIT
MONOPOLIES WHEN THE PUBLIC INTEREST SO
REQUIRES. NO COMBINATIONS IN RESTRAINT OF
TRADE OR UNFAIR COMPETITION SHALL BE
ALLOWED
ARTICLE XII SECTION 19
THE STATE SHALL REGULATE OR PROHIBIT
MONOPOLIES WHEN THE PUBLIC INTEREST SO
REQUIRES. NO COMBINATIONS IN RESTRAINT OF
TRADE OR UNFAIR COMPETITION SHALL BE
ALLOWED
ARTICLE XII SECTION 19
A monopoly is “a privilege or peculiar advantage
vested in one or more persons or companies, consisting
in the exclusive right (or power) to carry on a particular
business or trade, manufacture a particular article, or
control the sale of a particular commodity

-The law dictionary.org

monopoly is Market situation where one producer

controls supply of a good or service, and where the
entry of new producers is prevented or highly restricted.

-Businessdictionary.com
ARTICLE XII SECTION 19
IS MONOPOLY ABSOLUTELY PROHIBITED ?
ARTICLE XII SECTION 19

FRANCISCO S. TATAD VS THE SECRETARY OF THE DEPARTMENT OF ENERGY AND

THE SECRETARY OF THE DEPARTMENT OF FINANCE
ARTICLE XII SECTION 19

The petitioner question the constitutionality of RA No. 8180 “An Act

Deregulating the Downstream Oil Industry and For Other Purposes.” The
deregulation process has two phases: (a) the transition phase and the (b) full
deregulation phase through EO No. 372.

The petitioner claims that Sec. 15 of RA No. 8180 constitutes an undue

delegation of legislative power to the President and the Sec. of Energy
because it does not provide a determinate or determinable standard to guide
the Executive Branch in determining when to implement the full deregulation
of the downstream oil industry, and the law does not provide any specific
standard to determine when the prices of crude oil in the world market are
considered to be declining nor when the exchange rate of the peso to the US
dollar is considered stable.
ARTICLE XII SECTION 19

Whether or not R.A. No. 8180 violates the constitutional prohibition against
monopolies, combinations in restraint of trade and unfair competition.
ARTICLE XII SECTION 19
Supreme Court declared that Section 19, Article XII,
is anti-trust in history and spirit; it espouses competition.
The desirability of competition is the reason for the prohibition
against restraint of trade, the reason for the interdiction of
unfair competition, and the reason for the prohibition of
unmitigated monopolies.
A market controlled by one player (monopoly) or dominated
by a handful of players (oligopoly) is hardly the market where
honest-to-goodness competition will prevail.

In this case, it cannot be denied that our downstream oil

industry is operated and controlled by an oligopoly, foreign
oligopoly at that. So, if only to help the many who are poor
from further suffering as a result of unmitigated increase in the
prices of oil products due to deregulation, it is a must that R.A.
8180 be repealed completely.
ARTICLE XII SECTION 19
What then is the “Essence of this provision”

The objective of anti-trust law is ‘to assure a

competitive economy based upon the belief that
through competition, producers will strive to satisfy
consumer wants at the lowest price with the sacrifice
of the fewest resources. Additionally, there is reliance
upon “the operation of the ‘market’ system (free
enterprise) to decide what shall be produced, how
resources shall be allocated in the production
process, and to whom various products will be
distributed. The market system relies on the consumer
to decide what and how much shall be produced,
and on competition, among producers who will
manufacture it.

(Energy Regulatory Board vs CA G.R. No. 113079,

April 20, 2001)
ARTICLE XII SECTION 19
THE STATE SHALL REGULATE OR PROHIBIT
MONOPOLIES WHEN THE PUBLIC INTEREST SO
REQUIRES. NO COMBINATIONS IN RESTRAINT OF
TRADE OR UNFAIR COMPETITION SHALL BE
ALLOWED
ARTICLE XII SECTION 19
Philippine Competition Act (R.A. 10667)
The Philippine Competition Act (PCA) or R.A. 10667 is the primary competition policy of
the Philippines for promoting and protecting competitive market. It will protect the well-
being of consumers and preserve the efficiency of competition in the marketplace. The
PCA was passed in 2015 after languishing in Congress for 24 years.

It is a game changing legislation that is expected to improve consumer protection and

help accelerate investment and job creation in the country, consistent with the national
government’s goal of creating more inclusive economic growth. Enforcement of this law
will help ensure that markets are open and free, challenging anticompetitive business
practices while maintaining an environment where businesses can compete based on
the quality of their work.

A competitive market means a market with multiple buyers and multiple sellers, driving
market prices lower and offering consumers more choices. A truly competitive market
encourages efficiency and innovation, and forces businesses to excel.
ARTICLE XII SECTION 19
The act reflects the belief that competition:

Promotes entrepreneurial spirit,

Encourages private investments,
Facilitates technology development and transfer, and
Enhances resource productivity.

The law seeks to provide a national competition policy that will promote free and fair
competition in economic activities and protect the consumers.

To implement the national competition policy and attain the objectives and purposes of
this Act, an independent quasi-judicial body is hereby created, which shall be known as
the Philippine Competition Commission (PCC).
ARTICLE XII SECTION 19
ARTICLE XII SECTION 19
Role of the PCC
The Commission shall
- prohibit anti-competitive agreements,
- abuses of dominant position, and anti-competitive mergers and acquisitions.
Sound market regulation will help foster business innovation, increase global
competitiveness, and expand consumer choices to improve public welfare.

The PCC institutes a regulatory environment for market competition to:

1. Protect consumer welfare by giving consumers access to a wider choice over goods
and services at lower prices, and;
2. Promote competitive businesses and encourage market players to be more efficient
and innovative. Competition also benefits small and medium businesses.
ARTICLE XII SECTION 19
Powers and Functions of the PCC
1. Conduct inquiry, investigate and hear and decide case motu proprio or upon
verified complaint or upon referral of a concerned regulatory agency;
2. Review proposed mergers and acquisition;
3. Monitor compliance;
4. Stop, redress, apply remedies based on findings;
5. Issue subpoenas ;
6. Conduct administrative proceedings, impose sanctions, fines or penalties;
7. Issue adjustment or divestiture orders;
8. Undertake inspection of business premises, under order of court;
9. Deputize enforcement agencies; and
10. Issue advisory opinions on competition matters. (R.A. 10667, Philippine Competition
Act, Sec. 12)
ARTICLE XII SECTION 19
Prohibition on the Issuance of Temporary Restraining Orders, Preliminary Injunctions and
Preliminary Mandatory Injunctions

Only the Court of Appeals and the Supreme Court may issue a temporary restraining
order, preliminary injunction or preliminary mandatory injunction against the Commission
in the exercise of its duties or functions. (R.A. 10667, Philippine Competition Act, Sec. 47)
ARTICLE XII
SECTION 20
ARTICLE XII SECTION 20
THE CONGRESS SHALL ESTABLISH AN INDEPENDENT CENTRAL MONETARY AUTHORITY, THE
MEMBERS OF WHOSE GOVERNING BOARD MUST BE NATURAL-BORN FILIPINO CITIZENS, OF
KNOWN PROBITY, INTEGRITY AND PATRIOTISM, THE MAJORITY OF WHOM SHALL COME FROM
THE PRIVATE SECTOR. THEY SHALL ALSO BE SUBJECT TO SUCH OTHER QUALIFICATIONS AND
DISABILITIES AS MAY BE PRESCRIBED BY LAW. THE AUTHORITY SHALL PROVIDE POLICY DIRECTION
IN THE AREAS OF MONEY, BANKING, AND CREDIT. IT SHALL HAVE SUPERVISION OVER THE
OPERATIONS OF BANKS AND EXERCISE SUCH REGULATORY POWERS AS MAY BE PROVIDED BY
LAW OVER THE OPERATIONS OF FINANCE COMPANIES AND OTHER INSTITUTIONS PERFORMING
SIMILAR FUNCTIONS.

UNTIL THE CONGRESS OTHERWISE PROVIDES, THE CENTRAL BANK OF THE PHILIPPINES
OPERATING UNDER EXISTING LAWS, SHALL FUNCTION AS THE CENTRAL MONETARY AUTHORITY.
ARTICLE XII SECTION 20
Composition of the Monetary Board

(a) the Governor of the Bangko Sentral, who shall be the Chairman of the Monetary
Board. The Governor of the Bangko Sentral shall be head of a department and his
appointment shall be subject to confirmation by the Commission on Appointments;

(b) a member of the Cabinet to be designated by the President of the Philippines; and

(c) five (5) members who shall come from the private sector
ARTICLE XII SECTION 20
What are the qualifications of the members of the governing board of the central
monetary authority?

1. Natural-born Filipino citizens.

2. Of known probity, integrity and patriotism

3. Majority of the members shall come from the private sector.

ARTICLE XII SECTION 20
What is the function of the central monetary authority?

1. It shall provide policy direction in the areas of money, banking and credit.

2. It shall have supervision over the operations of finance companies and other
institutions performing similar functions.