Antitrust measure enacted within the year

October 1, 2014 at 09:14

CONGRESS aims to pass within the year a measure that will curb monopolies and unfair competition in business, according to lawmakers.

Senate President Franklin M. Drilon said the Senate will pass the proposal on third and final reading when Congress resumes session on Oct. 20.

“We will be passing the Fair Competition Act on third reading when we come back on October 20. We are almost through with debates… The bill is almost in its final form,” he told business groups during the general membership meeting of the Management Association of the Philippines (MAP) Monday where he was guest speaker.

The House of Representatives for its part eyes plenary debates and passage of the bill by the end of 2014.

“That’s our priority. Within the year, it should already be at the plenary [and] before the end of the year approved on third and final reading,” House Ways and Means Committee Chairman Rep. Romero S. Quimbo of Marikina City (2nd district) said via text.

The antitrust measure, included in the legislative priorities of both the Executive and the Legislature for the 16th Congress, will promote economic efficiency in trade, industry and commerce through the prohibition of anti-competitive agreements, abuse of dominant position, and anti-competitive mergers which distort and restrict competition, Mr. Drilon said.

“Having a competition law and policy in place will foster the competitive environment in our national economy. It will spur economic efficiency and innovation, and attracts investments… which [will] lead to lower prices, higher quality of products and services, and more choices for consumers,” he added.

Section 19, Article XII of the 1987 Constitution provides that “[t]he State shall regulate or prohibit monopolies when the public interest so requires.”

Senate Bill (SB) No. 2282 or the Fair Competition Act of 2014 is pending second reading approval in the Senate. As of Sept. 23, the Senate ended its period of debates and the proposal has been under individual amendments since.

In the House of Representatives, their version of the antitrust bill “already secured committee approval and is now pending in the committee of appropriation for review,” House Speaker Feliciano R. Belmonte, Jr., said in a text message.

“It’s also a priority for us,” Mr. Belmonte said.

Meanwhile, business groups welcomed the development.

American Chamber of Commerce of the Philippines (AmCham) senior adviser John D. Forbes said via text: “By passing the Fair Competition Act, Congress will bring the Philippines up to the level of other ASEAN (Association of Southeast Asian Nations) economies and be better prepared to apply for the TPP (Trans-Pacific-Partnership).”

For his part, European Chamber of Commerce of the Philippines Executive Vice-President Henry J. Schumacher, in a separate text message, said: “We are delighted to see fair competition legislation moving. We need a level playing field in doing business in this country and this law will definitely help achieve this.”

Makati Business Club (MBC) President Peter V. Perfecto said: “We certainly welcome this commitment by Congress and will support efforts to have this passed at the soonest time. It has been our position that a comprehensive and effective competition policy be enacted to ensure a level playing field for all businesses and improve the country’s attractiveness as an investment destination.”

“A comprehensive competition policy and law is also one of the pillars in the ASEAN economic community. We hope that what will come out is a law which provides a level playing field for business, prohibiting anti-competitive behavior rather than focusing on mere size of firms,” he added.

Earlier, economists also cited the importance of a competition law amid the region’s economic integration by next year’s end.

Former Socioeconomic Planning chief Cielito F. Habito said the Philippines is the only member of the ASEAN-5 — the others being Indonesia, Malaysia, Singapore and Thailand — that has no competition law in place. “We hope this time it will be passed because we need to have that if we want to be compliant with our agreements in the AEC (ASEAN economic community). Many of our lawmakers recognize that,” he said in a conference last Thursday.

“It is important because this would help level the playing field…” he added.

Former Finance chief and current co-vice chairman of the MBC Roberto F. de Ocampo said: “With the fast-approaching deadline, challenges lie in the area of connectivity, national legislation and disparities in the level of economic development among ASEAN member states…”

“We must take note with urgency that the Philippines ranks next to Myanmar at the bottom among 10 ASEAN economies in 2013 in terms of effectiveness of anti-monopoly policy,” Mr. de Ocampo said at the same forum.