The country’s biggest association of manufacturers on Friday hailed the government for the passage of Republic Act 10667 also known as the Philippine Competition Act.
A top official of the Federation of Philippine Industries (FPI) said “the law was necessary to assure a level-playing field for all types of businesses in all industry sectors.”
Jesus L. Arranza, FPI chairman said that “the law’s passage is very much welcome news although overdue.” He added “that a true climate of free competition will surely be brought about by the full implementation of this law.
“Without a doubt, such climate will force local businesses to shape-up and be more efficient in the production and distribution of their goods, which will ultimately make the prices of their goods competitive.”
FPI is composed of 45 industry associations, such as those involved in the production and distribution of agricultural products, vehicles, steel, ceramics and cement.
The FPI also recently launched the Fight Illicit Trade Movement, a broad- based, multisectoral initiative intended to protect consumers, safeguard government revenues and shield legitimate industries from the ill-effects of smuggling.
Arranza said “the FPI acknowledges the law’s laudable objective of preventing and penalizing businesses from engaging in anticompetitive business behavior, such as in forming or acting as cartels, and abuses by dominant business groups in a particular industry.”
“The proper implementation of the law is now in the shoulders of the Philippine Competition Commission (PCC), which fortunately is to be directly supervised by the Office of the President,” Arranza said. He added that while the Commission should protect first and foremost…the Filipino consumer, it is also important that businesses and stakeholders are consulted with respect to guidelines that will be promulgated to implement the law.”
In late 2011 the Department of Justice (DOJ) approved the filing of a criminal case against the Liquefied Petroleum Gas Marketers Association Inc. (LPGMA) for acting like a cartel as the group fixes the price of LPG sold in market for cooking purposes.
The LPGMA case, which is presently being heard by the Pasig City Regional Trial Court is landmark case, being the first ever “cartel” case filed by the DOJ against a business group or association.
The filing of this case in 2013 prompted the Justice Secretary Leila de Lima to create the Office for Competition within the department.
DOJ insiders say that this office is the forerunner of the PCC mandated to be established under the new law.