Press Release
April 12, 2009

MIRIAM FILES ANTI-TRUST BILL

Sen. Miriam Defensor Santiago proposed an anti-trust law in the country to penalize unfair trade and anti-competitive practices to improve consumer welfare and foster sound business ethics.

According to Santiago, chair of the Senate Committee on Economic Affairs, current laws for fostering competition in the Philippines are inadequate to stop anti-competitive practices and behavior in the market.

"Despite the large number of laws, competition has not been fully established nor enhanced in all sectors of the economy. These laws have been hardly used or implemented as may been seen in the lack of cases litigated in court," Santiago said.

Santiago's Senate Bill No. 3099, also known as the "Anti-Trust Act of 2009," prevents undertakings, corporations and businesses from distorting competition in the marketplace. It sanctions cartels, the abuse of market power by monopolies, and the unfair competition brought about by a merger, acquisition, or concentration of enterprises.

"Competition law should contain provisions explicitly prohibiting business practices clearly against economic efficiency and consumer welfare," Santiago said.

Santiago's bill creates the Competition Regulatory Commission to enforce and effectively administer the provisions of the proposed law and other fair trade laws. Under S.B. 3099, the commission can conduct its own administrative investigations on erring organizations and individuals, and initiate or institute civil or criminal charges against them.

Santiago sees a lack of expertise in the appreciation and implementation of competition laws that rely heavily on economic thought and analytic techniques as tools of enforcement.

"The responsibility is too diffused and accountability for implementation of competition laws is hard to pinpoint between the large number of enforcement agencies in the country. Identifying a single specialized agency under a specific competition law, with the necessary expertise and authority to oversee the enforcement of competition laws is a crucial first step," Santiago said.

Under the proposed law, violators will be jailed between five to twenty years. They would be fined no less than P300,000 if the offender is an individual, and not less than P3,000,000 for corporations.

Santiago's economic affairs committee conducted hearings earlier this year on the alleged collusion among Filipino contractors for World Bank-funded road projects.

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