THE country’s preparedness for an integrated Southeast Asian market by the end of the year has stepped up another notch following the passage of the proposed fair competition law in Congress, Senate President Franklin Drilon said Friday.
The bill was ratified by the Senate and House of Representatives before closing the second regular session on Wednesday. It is expected to be signed into law by President Benigno Aquino III, who earlier asked Congress to prioritize its passage.
“With the (proposed) Philippine (Fair) Competition Act one step away from being enacted into law, we are much closer to ensuring that our country is at par with our Asean neighbors in terms of preventing unfair trade behavior within our shores,” Drilon said.
To date, Drilon noted that the Philippines is the only founding member of Asean without a comprehensive anti-trust law.
He added that a competition law is a commitment under the Asean Economic Community Blueprint.
The long-standing absence of a competition law, Drilon said, “has discouraged and stymied the flow of investments to the country, thus, inhibiting our long-term economic development.”
Under the bill, a Philippine Competition Commission will be established to enforce a national competition policy prohibiting anti-competitive agreements, abuse of dominant position, and anti-competitive mergers and acquisitions.
The measure will penalize entities guilty of engaging in unfair business practices with fines reaching up to P250 million, with amounts adjusted for inflation every five years.
Offenders may also face up to seven years in prison.
Drilon said passing the bill will reinforce and complement many of the economic reforms the government has been pursuing.
“The (proposed) Philippine Competition Act is just one of the many pro-economic reforms and policies which are being pushed to make the country more competitive and more compliant to international standards, thus maximizing our true economic potential,” Drilon said.
The Senate has already passed economic reform measures like the amendments to the cabotage law and the proposed Tax Incentives Transparency Act while other proposed measures like the Rationalization of Fiscal Incentives and the Customs and Tariff Modernization Act are in the works as part of its priority legislative agenda. (Sunnex)