Bills seeking to punish monopoly, unfair trade practices re-filed in Congress
Caption: Rep. Feliciano Belmonte, who is expected to retain his post as Speaker in the new Congress, said his House Bill No. 1333 “aims to level the playing field by strengthening the legal and institutional framework that would combat unfair trade practices.”
MANILA, Philippines — Bills seeking to punish companies engaged in unfair trade practices have been resurrected in the 16th Congress.
Representatives Feliciano Belmonte of Quezon City and Rufus Rodriguez of Cagayan de Oro have filed their respective versions of the anti-trust bill, which would put up the Philippine Fair Competition Commission (PFCC).
To be placed under the Office of the President, the PFCC would go after “anti-competitive agreements, abuse of dominant position, and anti-competitive mergers.”
Belmonte, who is expected to retain his post as Speaker in the new Congress, said his House Bill No. 1333 “aims to level the playing field by strengthening the legal and institutional framework that would combat unfair trade practices.”
In HB No. 388, Rodriguez argued that “the lack of genuine competition in certain industries impairs public welfare and undermines the country’s credibility to provide a business climate conducive to investment.”
“With this bill, it is believed that unfair competitions, monopolies and cartels shall be properly regulated, if not totally eradicated, which will ultimately protect the consumers from abuses if market powers,” he said in the explanatory note.
An anti-trust bill was approved by the Committee on Trade and Industry and went as far as the second reading in the 15th Congress, he recalled.
Belmonte’s proposal seeks to prohibit “the abuse of market-dominant positions and the excessive concentration of economic power.”
He sought to do this “by regulating improper concerted acts and unfair business practices, thereby stimulating creative business activities, protecting consumers and promoting balanced development of the national economy.”
Among the prohibited acts are “anti-competitive agreements,” which “prevent, distort or restrict competition.” They include price-fixing and bid-rigging.
“Abuse of dominant position” refers to “predatory behavior toward competitors, limitation and control of markets, market allocation, and arrangements to share markets or sources of supply.”
It covers boycotts, meaning “any concerted refusal to sell or conspiracy not to sell or to stop doing business on the part of the suppliers of any goods, unless for a legitimate purpose.”
The Belmonte and Rodriguez measures also seek to penalize “anti-competitive mergers” or those that could “substantially lessen competition or tend to create a monopoly.”
Fine is set between P10 million and P50 million for individuals, and P250 million and P750 million for firms.
