PHILIPPINE COMPETITION ACT

Republic Act No. 10667

Purpose/Declaration of Policy
Section 2.
(a) Enhance economic efficiency and promote free and fair competition in trade, industry and all
commercial economic activities, as well as establish a National Competition Policy to be implemented
by the Government of the Republic of the Philippines and all of its political agencies as a whole;

(b) Prevent economic concentration which will control the production, distribution, trade, or industry
that will unduly stifle competition, lessen, manipulate or constrict the discipline of free markets; and

(c) Penalize all forms of anti-competitive agreements, abuse of dominant position and anti-
competitive mergers and acquisitions, with the objective of protecting consumer welfare and
advancing domestic and international trade and economic development.

Philippine Competition Act (PCA) encourages competition of the key market players in the economy
to avoid monopoly of businesses. In other words, by PCA, opening and operation of more businesses,
offering similar goods or services, are encouraged primarily to provide consumers choices of goods
and, in the process, regulating price of goods.

For example, more than one distributors/brand owners of mobile phones are encouraged, there is
Apple, Samsung, Huawei, Nokia, Cherry Mobile, among others. With the several distributors/brand
owners allowed to trade or sell mobile phones, consumers can choose from any of these distributors
where they can purchase mobile phones that suit their budget and needs. That’s as to the consumer
side.

On the other hand, in the view point of the distributors/brand owners, one distributor/brand owner
cannot unreasonably fix the prices of its own products knowing that, other distributors/ brand owners
are offering the same products or services. Say, Apple, it cannot sell its products at extremely high
prices. If it does, no one would be willing to buy its products, especially that Samsung or Huawei offer
the same mobile phone units, or even mobile phone units with better specifications.

If only one (1) distributor/brand owner is allowed to market or sell its products, the tendency is
monopoly. For example, if only Apple is allowed to market or sell its product, it has monopoly of the
market, meaning, consumers/buyers are left with no choice but to purc