ConCom seeks creation of competition commission

THE Consultative Committee (ConCom) tasked to review the 1987 Constitution has proposed the creation of a federal competition commission to guard against monopolies and cartels, a “prerequisite” to liberalize the economy under the proposed federal form of government.

Businessman Arthur Aguilar, chairman of the subcommittee on economic reforms, said the body intends to include the said provision as part of the economic reforms to be enshrined in the draft new Charter.

“We want to ensure free competition, dismantle or regulate monopolies and encourage diversified ownership of large businesses,” Aguilar said in a briefing.

“There is a need to strengthen the provisions against monopolies and unfair and inefficient market structures as a prerequisite to economic liberalization,” he said.

“If we liberalize the economy, we have to make sure that there will be fair and healthy competition and no players would allowed to dominate any industry or market.”

He noted that the Philippines was the last in the region to have a National Competition Authority.

“The PCA, which is currently under the Executive department, will eventually evolve into a national competition authority, a constitutional body with more powers, once the country shifts to federalism,” said Ding Generoso, ConCom spokesman.

Aguilar said the proposed commission will level the playing field and provide transparency and promote market efficiency “based on competency of producers, service providers and enhance consumer welfare.”

“So what is clear is that there will only be one competition policy and we want a competition authority which will be at the federal level,” Aguilar said.

“The competition authority shall have the mandate, functions national in scope. This means the federated regions cannot formulate their own competition policy or create their own competition authority,” he stressed.

“We want to deliver a message to the investors that in the future what we are envisioning is an economy that will ensure that there is always a free market competition,” Aguilar said.

“We want to make sure that the exclusive power of the national competition authority will be under the federal government and the federated regions who will have some exclusive and shared powers would not be able to enact any law that would impede competition,” he added.