Transcript of Sen. Bam Aquino's Interview
after the Hearing on Fair Competition Bill

Q: Anong magiging highlight ng competition policy natin?

Sen. Aquino: We're one of the few developing countries that doesn't have a valid competition policy. If we're talking about inclusive growth, making sure na may level playing field ang lahat ng mga negosyo sa bansa, iyong maliliit kayang makipagkompitensiya sa mas malalaki, kailangan talaga natin ng competition policy.

I look at this from the point of view of our efforts to fight poverty. Kung talagang gusto nating labanan ang kahirapan, kailangan talaga patas-patas ang laban. Just because mas malaki ka, hindi ibig sabihin noon puwede kang mam-bully ng maliliit.

Q: Mayroon bang ganoon dito sa atin sir?

A: I don't want to give examples but I'm sure mas marami kang examples kasi business reporter ka but we need to be able to create a leveled playing field so more of our countrymen can compete at iyong talagang magaganda ang produkto, masisipag, maganda ang value for money, puwede silang umangat kasi patas-patas iyong laban.

So I'm hoping this competition policy, if passed, can support our micro, small and medium enterprises. Let them grow into larger enterprises and provide more jobs to our countrymen.

Q: Anong standards ng competition law that will create that kind of scenario?

A: It safeguards abuse of dominant position so that in itself is already creating a level playing field. It stops cartel and monopolies that lead to high prices and less quality goods to our countrymen.

So even in those very basic provisions, basic principles of competition policy, which I have to reiterate, is common all over the world except in our own country.

Q. Ibig sabihin, Sir, we already have these policies, only that they are not implemented?

A: We don't have it yet. This policy is common in other countries but not in our country. Alam mo, ito ang isang batas na kay tagal nang dapat naisabatas. Ang RH, napakahaba, si Sin Tax, napakahaba na rin. This is one of those bills na dapat napasa na twenty years ago, sa totoo lang but still has not been passed.

We need to make sure it is passed to make sure na kung patas-patas ang laban, iyong mga maliliit na negosyo, hindi sila nadedehado. May kakayahan silang makipagkompitensiya sa mas malalaki.

Q: Which sectors po kaya sa Philippinas ang mayroong ganitong unfair competition?

A: Lahat. Kasi when you talk about cartels in the agricultural industry. Maraming kuwentong may cartel diyan. If we talk about abuse of dominant position, we're talking about groups in various industries.

So it's high time that we have this already passed. Kailangan na talaga siyang mapasa and we're serious about getting this passed in the Senate.

Q: When you say dominance, does that mean monopoly?

A: Monopoly or high market share but as we said earlier, this is not against companies that have high market share. It's against companies with high market share and who are using that position to abuse their powers or abuse smaller players in the market.

Q: Sir there are so many big players? And also with the telcos.

Sen. Aquino: The telcos, there are only two players. So dalawa lang iyan. Again, what we need to see we make sure that everyone is playing by the same rules.

Kung mas malinaw ang rules natin, mas madali talagang umangat ang maliliit and that's what we want. Kasi kapag iyong maliliit nakakasabay, nakakaangat, that's more jobs for our countrymen, that's more opportunities to our countrymen.

Q: Babawasan ang share ng ibang companies?

Sen. Aquino. It's not about companies with high market share. It's against companies with high market share that use that position to abuse other players in the market.

So kapag pinipigilan nila iyong ibang mga kakumpotensiya nila from doing well or from competing in the market, iyon ang pagbabawalan.

If you're able to reach market share because you have a better product or you have better price, or you are more innovative, that's not going to be a problem.

In fact, you will be supported. In fact, iyong mga kompanya who are innovative, who have cheaper prices for better quality goods, they will appreciate this. Kasi ang pag-angat nila ay hindi mahihinto ng isang kompanya na hindi fair makipaglaro.

So competition, fairness, they go side by side. By putting this together, at least makikita natin na patas-patas ang merkado and as we all know, if the market is successful, that means lower prices for consumers, better quality of products.

Q: Sir, are you going to create a Competition Commission?

Sen. Aquino. That's part of the law na mayroon talagang body na puwedeng mag-decide on matters regarding competition. That's one of the main features of the law, aside from the declaration of principle, iyong implementing arm niya.

Q: Will it be under DTI?

A. In the different bills filed, there are different suggestions so hindi pa nakokon-consolidate where they be lodged but right now there are two schools of thought, one is an independent body which my version also subscribed to.

And the other one is under the DOJ, similar to the situation in the US where the Department of Justice actually has a function where it can decide on matters on competition but in other countries, it's an independent body, which was also what PCCI suggested. So I'm leaning towards an independent body.

Q: At present, who decides or who rules on unfair trade practice? Is there a government agency?

Sen. Aquino. Some sectors have regulators. Across industries, they usually go to court but because there's a lack of a law that governs the competition policy, its open to a lot of interpretation.

This is one area na kulang iyong batas kasi usually overlegislated tayo pero in terms of competition policy, we are lacking in legislation. We're hoping that by passing this bill, we will able to fill in that gap and create that level playing field for Filipino businesses.

Q: Sino ang magko-compose ng independent body?

Sen. Aquino: Iba ibang bills, iba ibang versions but I think what's key is that doon sa independent body, there are members who have come from industry as well.

Although before, PCCI basically said, they are looking more into independent from executive and legislative like Bangko Sentral, that's what Mr. Dy talked about. The versions currently are parang industry led, former industry players, former businessman form part of the independent commission.

The other school of thought is that is lodged under the DOJ under the Office of Competition.

So I think its premature to say what will come out, kasi pag-uusapan pa iyon, obviously. Ako, they both have their advantages and disadvantages, What's more important is the body that will decide is really that the principle of competition is there.

In previous Congress, doon nag-bog down ang usapan. Kung ano ang composition ng body, sino iyong head, sino iyong ganyan. For me, that's something I think that the offers can definitely, can hammer out or compromise.

Ang mas importante, our overarching policy is there and that the law is there to give the executive the power on cases where there's lack of level playing field at nag-a-abuse ng dominant position.