Competition law badly needed as Asean integration nears–DTI

Trade Secretary Gregory L. Domingo asked the House of Representatives to fast-track the passage of its version of the competition law, which is seen as a vital component of the country’s preparation for the Asean economic integration in end-2015.

The House counterpart of the bill is now on second reading, while the Senate version was already approved on third reading last year.

“A competition law will level the playing field, especially for micro, small and medium firms that are at a disadvantage in the marketplace in reference to competing with the big firms. There is a need to provide equal opportunities to all to promote entrepreneurial spirit, encourage private investments and facilitate technology transfer,” Domingo said in a statement.

“With the onset of Asean integration in the next few months, the need to put in place such mechanism is more compelling,” Domingo added.

Regional integration will open up the Philippine market to the nine other Asean member-states and the region’s 600 million consumers.

The DTI chief said a competition law in place will serve to protect the local firms.

“We hope that the host of 14 congressmen authoring the bill from various political affiliations, especially the Speaker, himself, and a former President, will highlight the importance of the bill at the House of Representatives,” Trade Undersecretary and  Head for Asean SME Trade Facilitation Prudencio Reyes added.

The proposed measures in both chambers of Congress will create an independent commission tasked to implement the competition law. The said measures will also recognize the role of the Department of Justice- Office for Competition (DOJ-OFC), as it will continue to investigate and prosecute all criminal offenses arising under this act and other competition-related laws.

“Enactment by Congress of such measure will ensure of a strong and more permanent government office, the present office is only created by an executive order,” Reyes said, adding that an independent enforcement body to regulate and rule on cases is preferable as opposed to previous proposal of lodging authority under the DOJ.

Senate Bill 2882 entitled “An Act Promoting Fair Competition to Protect Consumer Welfare, Advance Domestic and International Trade and Sustained Economic Development by, among others, Regulating Monopolies, Anti-Competitive Agreements, Abuse of Dominant Position and Anti-Competitive Mergers, Establishing the Fair Competition Commission and Appropriating Funds Therefor, and Other Purposes,” is authored by Senators Sergio Osmeña III, Teofisto Guingona III, Miriam Defensor-Santiago, JV Ejercito Estrada, Antonio Trillanes IV and Paolo Benigno Aquino IV.

House Bill 5286 entitled “Promoting a National Competition Policy for the Philippines, Prohibiting Anti-Competitive Practices in Restraint of Trade, Abuse of Dominant Position, Unfair Competition, Establishing the Philippine Competition Commission, Appropriating Funds Therefor, and for Other Purposes,” is authored by Speaker Feliciano Belmonte Jr. and former President and now Rep. Gloria Macapagal-Arroyo along  with Reps. Rufus Rodriguez, Maximo Rodriguez, Salvacion Ponce-Enrile, Marcelino Teodoro, Reynaldo Umali, Diosdado Ignacio Arroyo, Teodoro Haresco Jr., Neil Tupas, Sergio Apostol, Anthony del Rosario, Giogidi Aggabao and Ibarra Gutierrez.