A national policy prohibiting agreements that discourage business competition and other unfair trade practices is closer to becoming a law after hurdling the House Appropriations committee.
The committee chaired by Davao City Rep. Isidro Ungab on Tuesday approved the substitute bill to 11 proposals, one of which was House Bill 1133 authored by Speaker Feliciano Belmonte Jr.
The National Competition Policy Bill, one of the Aquino administration’s priority legislative measures, is expected to pass in the run-up to the ASEAN economic integration next year, said Davao Del Norte Rep. Antonio Rafael del Rosario, one of the authors of the bills consolidated by the House panel.
“We are hoping that by the end of this year, we will be able to spprove it, or hopefully between one month before our Christmas break,” Del Rosario said.
The ASEAN integration will pave the way for the creation of an ASEAN Economic Community (AEC), a single market spanning the 10-nation bloc that includes Brunei, Cambodia, Indonesia, Laos, Malaysia, Myanmar, Philippines, Singapore, Thailand and Vietnam.
The integration is envisioned to cause a freer flow of goods, services, investment and skilled labor in Southeast Asia with the removal of existing trade barriers.
Among the unfair trade practices prohibited by the bill are the restriction of competition as to price or other terms of trade; the setting, limiting, or controlling of production, markets, technical development, or investment; dividing or sharing the market, whether by volume of sales or purchases, territory, type of goods or services, buyers or sellers or any other means; fixing price at an auction or in any form of bidding including cover bidding, bid suppression, bid rotation and market allocation and other analogous practices of bid manipulation; and applying dissimilar conditions to equivalent transactions with other parties, which places other parties at a competitive disadvantage.
The measure also prohibits one or more entities from taking advantage of their dominant position in the market by engaging in conduct that would unreasonably prevent or restrict competition.
P200K fine, imprisonment
Other deceptive trade or business practices banned by the proposal—which have the object or effect of unreasonably and substantially preventing, restricting or lessening competition—are the distribution of false or misleading information which is capable of harming the business interests of another entity; failure to disclose matters relevant to franchises and other business opportunities offered to consumers such as investment requirements, training, sales potential, and average earnings; and unauthorized use, or dissemination of confidential scientific or technical production, business or trade information.
The bill also provides for the creation of a Philippine Competition Commission to be under the Office of the President and shall implement the National Competition Policy. It shall be composed of a Chairperson and four Associate Commissioners.
Under the bill, those proven to have failed or neglected to comply with any term or condition of a binding ruling, a cease and desist order or an order for readjustment issued by the Commission, shall pay a fine of P50,000 to P200,000 for each violation.
Meanwhile, an entity that enters into any anti-competitive agreement or conduct shall be penalized, for each and every violation, by imprisonment of five to ten years or a fine up to 10 percent of the annual turnover of the infringed during the previous fiscal year, or up to one percent of the value of the assets of the infringed, whichever is higher. Both penalties may also be imposed.
Belmonte earlier said the legislation of a National Competition Policy will “encourage fair and free economic competition” by prohibiting the abuse of market dominant positions and the excessive concentration of economic power.
A law against competition will regulate improper concerted acts and unfair business practices, thereby stimulating creative business activities and protecting consumers, he said.
According to Belmonte, a national competition policy will “unify, codify, update, and streamline all legislation and regulations affecting competition in the country.”
President Benigno Aquino III in 2010 urged Congress to pass an anti-trust law to promote fair competition and provide opportunities for small and medium scale enterprises to participate and contribute to economic growth. —NB, GMA News
