PH Competition Act signed into law today

President Aquino is set to sign today the landmark Philippine Competition Act, which will, hopefully, put an end to price fixing, cartels and other forms of anti-competitive business practices that stifle the growth of the country’s micro small and medium enterprises (MSMEs) in the country.

The Philippine Competition Act is considered the longest-running measure in Congress, taking 25 years before hurdling the legislative mill. Considered a landmark bill, it was first filed in the 8th Congress, and ratified two decades later by the 16th Congress.

Among its key provisions is the creation of an independent Philippine Competition Commission (PCC) tasked to regulate and rule on cases involving practices such as anti-competitive acts, cartelization, and bid riggings.

“The Philippine Competition Act will usher in a new era of doing business in the country,” said Sen. Bam Aquino, co-author and principal sponsor of the measure being the chairman of the Senate Committee on Trade, Commerce, and Entrepreneurship.

“Businesses, whether big or small, will now be on equal footing as the law penalizes anti-competitive agreements and abuses of dominant players,” stressed Sen. Bam, adding that cartels will also be eliminated under the law.

As an independent quasi-judicial body, the PCC will look into anti-competitive behaviors, abuses in dominant positions, and anti-competitive mergers and acquisitions.

“This will lead to an efficient market economy and a level playing field for all businesses,” added Sen. Bam, chairman of the Senate Committee on Trade, Commerce and Entrepreneurship.

The PCC can impose administrative penalties of a maximum fine of million on the first offense and million for the second offense for anticompetitive agreements and abuses of dominant position.

Moreover, courts can impose criminal penalties of imprisonment from two to seven years and a maximum penalty of million for anti-competitive agreements done between and among competitors. The imprisonment will be imposed to responsible officers and directors of