PCC finalizing nat’l competition policy EO

By Bernie Cahiles-Magkilat | Published March 4, 2019, 10:00 PM

The National Competition Policy, a comprehensive framework that steers regulations and administrative procedures, is being finalized by the Philippine Competition Commission in another leap forward of the Philippines towards ensuring free and fair market competition.

PCC Chairman Arsenio Balisacan said they are finalizing the NCP together with the National Economic and Development Authority. The NCP is planned to be issued as an Executive Order containing a comprehensive framework that steers regulations and administrative procedures to promote free and fair market competition.

Balisacan announced the NCP progress in a speech before the launch of the World Bank Report on “Fostering Competition in the Philippines: The Challenge of Restrictive Regulations”.

The NCP has three fundamental pillars. One, the effective enforcement of the Philippine Competition Act. Two, the enactment of pro-competitive government regulations and issuance. And three, the internalization of the principle of competitive neutrality.

“When the NCP is executed, all government agencies will effectively be directed by no less than the President to assess and remedy competition-related issues,” said Balisacan.

The PCC is mandated to assist and collaborate with the National Economic and Development Authority in the formulation and adoption of this policy, as well as to create an inter-agency mechanism to operationalize it.

This endeavor is expected to further deepen market reforms through the internalization of competition principles within the government policy architecture, auguring well for the competition landscape across all industries and sectors, he said.

Balisacan also noted that there now exist an increasingly large appetite and strong momentum for market-friendly policies.

With “Build, Build, Build”, he said, the government’s flagship socioeconomic program, now well underway, “We need to deepen the gains and policies that encourage free and fair participation of the private sector to promote growth that is truly inclusive to all.”

“I am happy to say that there has been much progress toward this end,” added as he cited the recent passage of the rice tariffication law, ending the state’s long-held monopoly of rice importation calling it a landmark policy reform as it allows the more efficient and nimble private sector to compete in the rice market.

The law, he said, is expected to bring down prices, benefiting millions of Filipino consumers, most especially the poor.

“While the effects of liberalization are, by their very nature, uneven, boosting productivity rather than curtailing market forces is the more prudent solution toward improving competitiveness of the rice sector. Because of the link between wages and food prices, lower food prices, in turn, can help spur manufacturing and make our industrial sector more attractive to investors,” he said.

Another sector holding much promise is the telecommunications sector, he said.

With the selection and forthcoming operation of the third telco player, he said, “We expect user fees and service quality to improve as players vie for a greater share of the market. The PCC is quite proud in that it has championed the competition lens in the selection process by providing technical inputs to the Department of Information and Communications Technology and the National Telecommunications Commission.”

To complement this major reform, PCC has likewise advocated for pro-competitive features in the legislative and regulatory measures concerning the common tower policy, mobile number portability, open access in data transmission, and spectrum management reform.

“Just a few weeks ago, the government passed the Mobile Number Portability Act, enabling number portability across different telco service providers. This is another landmark achievement for the country. Such regulatory reforms are critical toward sustaining the growth trajectory we are currently enjoying,” he concluded.

Source: https://business.mb.com.ph/2019/03/04/pcc-finalizing-natl-competition-policy-eo/