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Guico, Katherine Mae L. ABPLIII

THE NEED FOR A COMPETITION LAW OR ANTI-TRUST LAW IN THE

PHILIPPINES

The higher we soar, the smaller we appear to those who cannot fly. -

Friedrich Wilhelm Nietzsche

To our ever energetic and supportive professor, Atty. Alvin B. Landicho,

and to you, dear and beloved classmates, a blessed afternoon.

Amidst the prevailing era of internationalization, humanity is travailing

hard with the impact of globalization where the integration of differenteconomies throughout the world has severed the barricades to trade and widely

unclogged the marketplace. Despite these facts and before considering

globalization, the framers of the law in the Philippines must first draw up our

own domestic competition law or policy. By pushing for the enactment of this

law, the Filipinos can excel in foreign market competition and the Philippine

market will be a sight to behold to foreign market investors.

Competition Law refers to the framework of rules and regulations

designed to foster the competitive environment in a national economy. This law

is crafted to prevent actions that might hurt consumers or unfairly harm other

businesses, such as the formation of monopolies, illegal cooperation between

competing businesses, and certain mergers between companies. This concept

of competition policy or law is not unfamiliar in the Philippines. In fact, our

country has a vast range of laws and statutes dealing with the diverse facet of

competition law such as the The Consumer Act of the Philippines, The Price Act,

The Intellectual Property Code, The Corporation Law of the Philippines, and The

Revised Securities Act. Corollary to this, Article 186 of the Revised Penal Code,

defines monopolies and combinations in restraint of trade and penalizes anti-

competitive behavior that is criminal in nature. Further, Article 28 of the New

Civil Code allows the collection of damages arising from unfair competition as

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well as abuse of dominant positions by a monopolist. Despite having these laws

and statutes, it is ostensible that all we have is a hodge-podge of distinct laws

that do not rigidly safeguard the Filipino companies or individuals in the sight

of fresh and surfacing monopolies or abusive companies.

On July 1, 2010, Senate President Juan Ponce Enrile introduced Senate

Bill No. 1 or An Act Penalizing Unfair Trade And Anti-Competitive Practices In

Restraint Of Trade, Unfair Competition, Abuse Of Dominant Power,

Strengthening The Powers Of Regulatory Authorities And Appropriating Funds

Therefor, And For Other Purposes, otherwise known as the Competition Act of

2010. In the explanatory note of the aforementioned bill, the good senator

enunciated that the Filipinos have been so victimized by big businesses that

the Senate deemed it necessary to protect the people from price manipulators

through the enactment of this bill into a law. The need for this law, as declared

by the Senate President, is sanctioned by our Constitution, specifically Article

XII, Section 19 thereof which expressly provides that the State shall regulate

and prohibit monopolies when the public interest so requires and that no

combinations in restraint of trade or unfair competition shall be allowed.

Further, Section 22 of the same article encourages the promulgation of

legislation that would impose civil and criminal sanctions against those who

circumvent or negate this principle. In connection thereto, President Benigno

Noynoy S. Aquino III said in his first State of the Nation Address that it is the

governments duty to ensure that the market is fair for all and to fulfill his

statist duty as the highest elected official of the land, he believes that he has to

put an end to monopolies or cartels in the country.

No matter how necessary the enactment of this bill into a law is, there

are still bunch of criticisms that are being thrown thereto resulting in itspendency in the Senate. A coin has always two sides and this is the side of the

tail. Some Filipinos believe that the Competition Law is a non-objective law that

will make big time businessmen criminals basing their belief in the Philosopher

Ayn Rands comment in Choose Your Issues, The Objectivist Newsletter. In

her comment, the philosopher said that a competition or antitrust law makes a

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man a criminal from the moment he enters a business, no matter what he does.

For example, if he charges prices as too high, he can be prosecuted for

monopoly; if he charges prices lower than those of his competitors, he can be

prosecuted for unfair competition; and if he charges the same prices as his

competitors, he can be prosecuted for conspiracy. Furthermore, some believe

that the proposed competition law is nothing but a replica of three United

States antitrust laws namely The Sherman Act, The Clayton Act of 1914 and

The Robinson-Patman Act of 1936. Critics suppose that the Philippines is doing

again its habit of adopting whatever laws the United States have.

Convincing as it may seems, my personal belief is still coinciding with

the saying by Herbert Hoover that competition is not only the basis of

protection to the consumer, but is the incentive to progress. With this, the

coins head discloses its side. Based on economic principles, competition

between enterprises entails lower prices of goods and services for the general

public or consumers. It may also stimulate industries to furnish a better

quality of goods and services in order to entice customers to patronize said

goods and services. In addition, monopolies, being the only sellers of a specific

commodity or service, are able to charge consumers with prices higher than theusual without competition laws. Monopolies are curses in the business world.

They shout to the Small and Medium-Scale Enterprises that the latter cannot

aspire to be as powerful as the former and that the fates of these Enterprises

are to be gulped by the gluttonous desires of these monopolies. For instance,

The Philippine Long Distance Telephone Company and JG Summit Holdings,

Inc. jointly announce that PLDT has successfully completed the acquisition of a

majority interest in Digital Telecommunications Philippines, Inc. from JG

Summit and other shareholders of Digitel, in a landmark share swap

transaction valued at about P69.2 billion. Said acquisition of PLDT, the biggest

telecommunications company in the Philippines, of Digitel, the countrys third

largest, ignited an even hotter interest for a competition law as PLDT now has a

high percentage of tendencies to monopolize the telecommunications field in

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the Philippines leaving its competitors at stake. Pursuing for the enactment of

this law, domestic and foreign investors will be able to see that the Philippine

economy is embracing a fair market competition by not favoring those big,

powerful, and influential businesses. Moreover, competition laws are often

crafted to hinder competing companies from working together to set prices.

After all, companies are not families but are battlefields in a civil war according

to Charles Duhigg. With an existing competition law, different enterprises will

be motivated to manufacture the best of the best products. Most importantly,

competition law will give Small and Medium-Sized Enterprises the opportunity

to contribute to the development and progress of our economy by giving them

the opportunity to improve the quality of the goods and services that they are

offering and in order to give them a huge chance to become one of the giant

businesses in the country. For example, Juan Umaasa is an owner and

proprietor ofStill Hoping or SHShopping Centers. Like any other enterprises,

he aspires that his business would be as popular and influential as SM

Supermalls. With a competition law, Still HopingShopping Centers will have a

great chance to contribute to the continuing progress of our economy by

producing quality goods and rendering exceptional services. Sooner or later, it

is not out of sight that it can be as popular and influential as SM Supermalls.

Still Hopingwill no longer hope as it could already be the Survivors Heritage

Supermalls.

In light of all the foregoing, competition law is indeed in its prime as an

intrinsic part of economic reform programs of developing economies like the

Philippines. As Filipinos reckon more on market mechanism and less on

government intervention to attain economic success, we need a comprehensive

and sound competition law to guarantee that the market runs virtually andgives birth to a more efficient economy. Time will come that some businesses in

our country will not just look up to those who soar high, but will be flying with

them, exhilarated to reach progress in the highest pursuit of both individual

and economic development.