Skip to main content

Competition Law in the Philippines

To date, the Philippines do not have a comprehensive and developed legislation relating to anti-trust and monopoly activities. However, there are several anti-trust bills pending before the Philippine Congress. They are as follows:

  1. Senate Bill (“S.B.”) No. 175 - An Act creating the Fair Trade Commission, prescribing its powers and functions in regulating trade competition, and monopolies and for other purposes;
  2. S.B. No. 1361 - An Act providing for more effective implementation of the Constitutional mandate against monopolies, combination and restraint of trade and unfair competition by redefining and strengthening existing laws, processes and structure regulating the same, and for other purposes;
  3. S.B. No. 1600 - An Act prohibiting monopolies, attempt to monopolize industry or line of commerce, manipulation of prices of commodities, asset acquisition and interlocking membership in the board of directors of competing corporate bodies and price discrimination among customers, providing penalties therefore, and for other purposes;
  4. House Bill (“H.B.”) 1906 - An Act declaring unfair trade practices as acts of economic sabotage. HB 1906 declares the following acts as economic sabotage and provides criminal sanctions for the same: (i) smuggling; (ii) technical smuggling; (iii) misclassification of importation; (iv) dumping, and (v) other forms of unfair trade practices.
  5. H.B. No. 198 - An Act creating a special body that shall regulate and exercise authority over monopolistic practices, combination in restraint of trade and unfair competition and appropriating funds therefore; and
  6. H.B. No. 2439 - An Act penalizing unfair trade practices and combinations in restraint of trade, creating the Fair Trade Commission, appropriating funds therefore, and for other purposes.
The most significant of these bills is S.B. No. 175, proposing the passage of the “Fair Trade Act” or an Act Creating the Fair Trade Commission, Prescribing Its Powers and Functions in Regulating Trade Competition and Monopolies and For Other Purposes. This bill consolidates all anti-trust laws into one law and establishes a Fair Trade Commission (“Commission”), an executive body that will enforce the Fair Trade Act. Generally, the bill seeks to prohibit monopolies and cartels and other practices which diminish, impair or prevent competition and free trade. It defines absolute monopolies, relative monopolies and trusts which may constitute prima facie violations of the law. A trust is defined as a merger, acquisition of control or any act whereby companies, partnerships, shares, equity, trusts or assets are concentrated among competitors, suppliers, customers or any other business entity. Under enumerated circumstances, the bill, if passed into law would require prior notification to the Commission before trusts are formed.

There are also laws of general application that are relevant to the regulation of anti-trust and monopoly activities.

The Philippine Constitution outlines the state policy of regulating or prohibiting monopolies when the public interest so requires. No combinations in restraint of trade or unfair competition are to be allowed.

In relation to this policy, the Revised Penal Code of the Philippines penalizes parties entering into any contract or agreement or taking part in any conspiracy or combination in the form of a trust or otherwise, in restraint of trade or commerce, as well as penalizes those who prevent, by artificial means, free competition in the market. It also imposes penalties on parties who monopolize any merchandise or object of trade or commerce, or who combine with any other persons to monopolize said merchandise or object in order to alter the prices thereof or who spread false rumors or make use of any other artifice to restrain free competition in the market.

The Civil Code allows the recovery of damages in cases of unfair competition in agricultural, commercial or industrial enterprises. There are also other laws on unfair competition pertaining to the protection of intellectual property rights.

Popular posts from this blog

Pantomina Lyrics And Music

Pantomina is Spanish for pantomime, movements imitating the courtship movements of the rooster and the hen. Ang mga babaye
Kung mayo pa nin agom
Maugay nin aga maugay nin hapon
Alagad kung sinda igua na nin agom
Maugay Octobre, Disyembreng sunudon. Ica palan, Nenang ang pinagsasabi
Magayon na burac sa lugar na ini
Magayon ang tindog malinig ang pisngi
Arin pa daw ang puso ang dai mawili. Can ica sadit pa sadit pa man aco
Si satuyang cawat magkudot-kudotan
Kinudot mo aco kinudot ta ca man
Sabi mo sa saco luhayluhaya man. Ang mga lalake
Hudyan sisaboot
Ang pinagsasabing ngarang pagcamoot
Kundi ang babayeng iyo minahilod
Akong minahiling can mga pangguyod.

Philippine Mining Act of 1995

With the recent issue of magnetite ore mining overwhemingly opposed by residents in the town of Bagamanoc and recently moved the mining site off the coast of Panganiban (Payo), I am compelled to post this Mining Act to serve as reference. "Republic Act No. 7942 or the Philippine Mining Act of 1995 (“Act”) is the governing law that regulates mineral resources development in the country. One of the primary objectives of this act is to revitalize the ailing Philippine mining industry by providing fiscal reforms and incentives and maintaining a viable inventory of mineral reserves to sustain the industry through the infusion of fresh capital through direct investments to finance mineral exploration and/or development activities. The original implementing rules and regulations of the Act was prepared in 1995, and was revised in 1996 under DENR Administrative Order 96 – 40, the revised implementing rules and regulations (RIRR). Collectively, the Act and its RIRR take into considerat…

Catanduanes Remains Top Abaca-Producing Province - BM

Abaca-fiber production in the country’s top abaca-producing province from January to May 2009 went up by 22 percent to 8,646.32 metric tons (MT), said the Fiber Industry Development Authority (FIDA). FIDA noted that in January to May 2008, abaca farmers in Catanduanes produced 7,084.23 MT. The attached agency of the Department of Agriculture said a total of 16,231 farmers were involved in abaca production in the province in 2008. FIDA said the island province of Catanduanes is renowned as the “abaca capital of the Philippines.” The province is now the top producer of abaca fiber, has the largest area planted to abaca and has the biggest number of abaca farmer-producers in the Philippines. Joining Catanduanes as the country’s top 10 abaca-producing provinces are Southern Leyte, Leyte, Davao Oriental, Northern Samar, Davao del Sur, Surigao del Sur, Samar, Sulu and Sorsogon. FIDA said the province also adjusted its production for the year due to the projected slowdown in demand for…

Catanduanes Watershed Forest Reserve

Site description: Catanduanes is an island of 182,300 ha which lies about 10 km off the tip of the Caramoan Peninsula in southern Luzon. The terrain on the island is hilly, particularly in the central portion, but the highest point only reaches just over 800 m. The substantial forests which remain in central Catanduanes are therefore all lowland dipterocarp in type, and are the largest remaining forest block in the whole of the Bicol Region. Forest is found above 490 m, and is estimated to cover a total of about 69,770 ha. It includes considerable areas of old growth dipterocarp forest (reported in 1997 to cover 5,876 ha), and closed-canopy forest in areas that show evidence of having been logged. These forest areas are the source of water for Catanduanes Province. One hydropower project is currently operational, that supplies power to urban areas of the island. The forest areas was proclaimed as a Watershed Reserve in 1987 because of these important function, the whole area is sta…

Abaca: Natural Fiber

Once a favoured source of rope for ship's rigging, abaca shows promise as an energy-saving replacement for glass fibres in automobiles. The Plant Also called manila hemp, abaca is extracted from the leaf sheath around the trunk of the abaca plant (Musa textilis), a close relative of the banana, native to the Philippines and widely distributed in the humid tropics. Harvesting abaca is labourious. Each stalk must be cut into strips which are scraped to remove the pulp. The fibres are then washed and dried. The Fiber Abaca is a leaf fibre, composed of long slim cells that form part of the leaf's supporting structure. Lignin content is a high 15%. Abaca is prized for its great mechanical strength, buoyancy, resistance to saltwater damage, and long fibre length – up to 3 m. The best grades of abaca are fine, lustrous, light beige in colour and very strong. Uses of Abaca During the 19th century abaca was widely used for ships' rigging, and pulped to make sturdy manila envelopes…