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COMPETITION POLICY ISSUES IN THE COUNTRIES OF ASIA

:

THE PHILIPPINES
Anthony Amunategui Abad
Ateneo de Manila University School of Law

COMPETITION LAWS AND REGULATION IN THE PHILIPPINES
Anti-Trust or Competition Law is actually not new to the Philippines. Old provisions of US anti-trust law found their way to the Philippine legal system.

COMPETITION LAWS AND REGULATION IN THE PHILIPPINES

THE CONSTITUTION “The State shall regulate or prohibit monopolies when the public interest so requires. No combinations in restraint of trade and unfair competition shall be allowed.” (art. XII, sec. 19)

COMPETITION LAWS AND REGULATION IN THE PHILIPPINES

CRIMINAL LAW Arts. 186 and 187 of the Revised Penal Code [Act no. 3815 (1932)] penalize monopolies and conspiracies or combinations in restraint of trade, artificial prevention of free competition, and unlawful commerce

COMPETITION LAWS AND REGULATION IN THE PHILIPPINES

CIVIL LAW Art. 28 of the Civil Code [Republic Act no. 386 (1949)] allows the collection of damages arising from unfair competition

COMPETITION LAWS AND REGULATION IN THE PHILIPPINES
OTHER LAWS
► Price

Act ► Consumer Act ► Corporation Code ► Revised Securities Act ► Intellectual Property Code ► Specific sectors

COMPETITION LAWS AND REGULATION IN THE PHILIPPINES

INTERNATIONAL COMMITMENTS
► WTO

Agreements ► ASEAN Agreements ► Bilateral Agreements ► Other International Agreements

COMPETITION LAWS AND REGULATION IN THE PHILIPPINES
JURISPRUDENCE
“Case law or judicial interpretation is particularly important in defining unlawful monopolies, combinations in restraint of trade, and unfair competition practices.” Examples of Supreme Court cases

COMPETITION LAWS AND REGULATION IN THE PHILIPPINES

PROBLEMS:
► Competition

laws remain unenforced ► Competition issues are resolved piece-meal and inconsistently ► NO COMPREHENSIVE COMPETITION POLICY

COMPETITION LAWS AND REGULATION IN THE PHILIPPINES

THE WAY FORWARD:
►A

Comprehensive National Competition Policy Framework ► A Comprehensive Competition Law

COMPETITION LAWS AND REGULATION IN THE PHILIPPINES

THE WAY FORWARD The Problem is essentially the POLITICAL ECONOMY of the Philippines

COMPETITION LAWS AND REGULATION IN THE PHILIPPINES

POLITICAL ECONOMY
► State

and Oligarchy in Historical Perspective Arbitrariness

 Spanish period & American colonial rule – wealth accumulation
► Political

 Weak degree of culpability in the legal & administrative spheres

COMPETITION LAWS AND REGULATION IN THE PHILIPPINES

POLITICAL ECONOMY
► Oligarchy

has used the powers of the State to create opportunities for themselves to make even more money – without having to create social wealth.

COMPETITION LAWS AND REGULATION IN THE PHILIPPINES
LEVELING THE PLAYING FIELD:
► Through

its allocative, distributive & incentive functions, competition can prevent undue concentration of economic power & political in the economic elite. ► Market economy will not only bring higher standards of living but will also have a liberative political effect.

COMPETITION LAWS AND REGULATION IN THE PHILIPPINES
GOVERNMENT’S ROLE:
► Not

to help business people avoid competition by awarding them subsidies, protective tariffs, preferential loans and other economic crutches ► But to push and challenge national industry to strive; to innovate; to stand up against the best in the world.

COMPETITION LAWS AND REGULATION IN THE PHILIPPINES
PHILIPPINES MUST REFORM – OR PERISH
► Philippine

development would have to rely on the play of market forces. ► Free markets – by nurturing civil society and by imposing their own restraints on the political system – stimulate popular demands for the rule of law and the protection of human rights.