Companies into cartel, unfair trade practices face up to 1250-M fines

Starting next week, the Philippine Competition Commission (PCC) may now impose penalties, including as much as 1250 million in fines, against companies involved in cartel and other anti-competitive practices.

PCC chairman Arsenio Balisacan said the penalties would be “in full force” once the two-year transitory period for companies to comply with the Philippine Competition Act (PCA) expires.

“Upon expiration of the transitory period on 8 August 2017, or 8-8,

otso-otso for easy recall, an existing business structure, conduct, practice or any act which violates the PCA shall be subject to the administrative, civil, and criminal penalties,” he said during a Palace press briefing.

Balisacan said the commission is authorized to impose administrative fines of up to 1100 million on the first offense, and up to 1250 million on the second offense against companies involved in unfair business practices.

Aside from the fines, the penalty of imprisonment of up to seven years may be imposed by the courts upon the violators, according to Balisacan.

“By next week, these fines and penalties with imprisonment will be in full force and effect,” he said.

At present, he said, the commission is investigating three cases allegedly involved in cartel and abuse of dominant market position. Those under investigation are players in the manufacturing, public services, and agriculture industry.

The three complaints are among the 26 queries and complaints for anticompetitive conduct in various industries received by the PCC.

Balisacan declined to disclose more details to preserve the integrity of the investigation.

“The amount of work may seem challenging, especially for a new government entity or agency. But we at PCC say: ‘Challenge accepted’,” he said.

“We have hired the best lawyers, economists, and public servants and we are ready,” he added.

The commission, created through Republic Act No. 10667 or the PCA, is mandated to promote fair competition among companies to safeguard the welfare of Filipino consumers.

The law prohibits anti-competitive agreements, abuse of dominance, and anti-competitive mergers and acquisitions. (Genalyn D. Kabiling)