ensuring businesses compete and consumers benefit · competition law: game changer anti-competitive...

Ensuring businesses compete and consumers benefit

Competition Law: Game Changer

anti-competitive business practices

Few industry players

Limited consumer

choice

Higher prices

Fair and competitive market

Little or No competition

restrictive economic policies

Level playing field for business

More choices at better prices for

consumers

Worldwide Enforcement

120+ jurisdictions around the world now enforce competition law

3

Competition Laws in ASEAN

• All ASEAN countries have Competition Law except forCambodia

• A number are reviewing their Competition Laws:

– Thailand

– Indonesia

– Malaysia

• Brunei, Laos, and Myanmar: no agency yet

Competition authorities

• US Federal Trade Commission (FTC)

• Competition Commission of Singapore (CCS)

• Germany

• UK

• Korea Fair Trade Commission (KFTC)

Constitution, Art. XII, Sec. 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.”

Revised Penal Code, arts. 185 & 186

– Penalties

– Evidence required

Competition laws (pre-Philippine Competition Act)

Provisions in various laws and regulations

Republic Act 10667THE PHILIPPINE COMPETITION

ACT (PCA)

“… The State also recognizes that the

provision of equal opportunities to all

promotes entrepreneurial spirit,

encourages private investments,

facilitates technology development and

transfer and enhances resource

productivity. Unencumbered market

competition also serves the interest of

consumers by allowing them to exercise

their right of choice over goods and

services offered in the market.”

• WHO?

• Any person or entity engaged in any trade, industry and

commerce in the PH (natural or juridical person,

whether incorporated or not, domestic or foreign

engaged directly or indirectly in any economic activity)

• GOCCs

• Trade associations if used in violation of the PCA

• WHAT?

• Local trade; international trade having direct,

substantial, and reasonably foreseeable effects in

trade, industry, or commerce in the PH

PCA covers

Anti-CompetitiveAgreements

Abuse of Dominant Position

Anti-CompetitiveMergers

PCA prohibits

• Administrative (Sec. 29) – Secs. 14, 15,

17, 20

– Fines

– Failure to comply with order

– False or misleading information

• Civil (Sec. 45) – Secs. 14(a) & 14(b)

• Criminal (Sec. 30) – Secs. 14(a) & 14(b)

– 2-7 yrs

PCA penalizes

The PCC

• PCC has original and primary jurisdiction in the enforcement and regulation of all competition-related issues

• PCC and sector regulators shall work together to issue rules and regulations to promote competition, protect consumers, and prevent abuse of market power by dominant players within their respective sectors

PCA is an opportunity for

its own brand of PPP• PCA is aimed at opening the market to more

players

• Non-adversarial and behavioral remedies show that the PCA is interested in helping entities correct anti-competitive practices

• A competitive environment increases the competitiveness of entities and the PH as a whole in ASEAN and the global market

• Competition on national, regional, and global levels will redound to the benefit of every consumer