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COMPETITION POLICY ISSUES INTHE COUNTRIES OF ASIA:

THE PHILIPPINES

Anthony Amunategui Abad Ateneo de Manila University

School of Law

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COMPETITION LAWS AND REGULATIONIN THE PHILIPPINES

Anti-Trust or Competition Law is actually notnew to the Philippines. Old provisions of USanti-trust law found their way to thePhilippine legal system.

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COMPETITION LAWS AND REGULATION INTHE PHILIPPINES

THE CONSTITUTION

“The State shall regulate or prohibitmonopolies when the public interest so

requires. No combinations in restraint of trade and unfair competition shall beallowed.” (art. XII, sec. 19)

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CRIMINAL LAW

Arts. 186 and 187 of the Revised Penal Code[Act no. 3815 (1932)] penalize monopolies

and conspiracies or combinations inrestraint of trade, artificial prevention of free competition, and unlawful commerce

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CIVIL LAW

Art. 28 of the Civil Code [Republic Act no. 386(1949)] allows the collection of damages

arising from unfair competition

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OTHER LAWS

► Price Act►Consumer Act

►Corporation Code

►

Revised Securities Act► Intellectual Property Code

► Specific sectors

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INTERNATIONAL COMMITMENTS

►WTO Agreements

► ASEAN Agreements

►Bilateral Agreements►Other International Agreements

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JURISPRUDENCE

“Case law or judicial interpretation is particularlyimportant in defining unlawful monopolies,

combinations in restraint of trade, and unfair

competition practices.”

Examples of Supreme Court cases

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PROBLEMS:

►Competition laws remain unenforced

►Competition issues are resolved piece-meal

and inconsistently►NO COMPREHENSIVE COMPETITION

POLICY

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THE WAY FORWARD:

► A Comprehensive National CompetitionPolicy Framework

► A Comprehensive Competition Law

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THE WAY FORWARD

The Problem is essentially the POLITICALECONOMY of the Philippines

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POLITICAL ECONOMY

►State and Oligarchy in Historical Perspective Spanish period & American colonial rule –

wealth accumulation

►Political Arbitrariness Weak degree of culpability in the legal &

administrative spheres

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POLITICAL ECONOMY

►Oligarchy has used the powers of the Stateto create opportunities for themselves to

make even more money – without having tocreate social wealth.

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LEVELING THE PLAYING FIELD:

►Through its allocative, distributive & incentivefunctions, competition can prevent undueconcentration of economic power & political inthe economic elite.

►Market economy will not only bring higherstandards of living but will also have a liberativepolitical effect.

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GOVERNMENT’S ROLE:

►Not to help business people avoid competition byawarding them subsidies, protective tariffs,preferential loans and other economic crutches

►But to push and challenge national industry tostrive; to innovate; to stand up against the best inthe world.

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PHILIPPINES MUST REFORM – OR PERISH

► Philippine development would have to rely on theplay of market forces.

► Free markets – by nurturing civil society and by

imposing their own restraints on the politicalsystem – stimulate popular demands for the ruleof law and the protection of human rights.

Documents

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