Tulod, Byron Jon

L-150818, 1-I
15 August 2015
Legal Research
Republic Act No. 10667 or the Philippine Competition Act
Generally, in all spheres of business, a healthy competition is very crucial and
desirable. Not only does it promote some sense of motivation and growth for the
individuals or corporations, but it also has a lot of benefits to the consumers. Also, when
there is a strong market competition in a country, chances of improving the economy
are relatively high the more the competition, the creativity of the entrepreneurs and
corporations in innovating variety of goods and services increases. If this happens,
more benefits are received by consumers such as good products, low price, and the
like. As a result, reciprocity between the consumers and economy occurs as the
exchange of goods and services for money would also benefit the economy since more
money circulating in a country represents a healthy economy. However, if there is lack
of competition in a market, there may be high prices and consumers would suffer. This
is where the Philippine Competition Act comes into play.
Republic Act No. 10667 or known as the Philippine Competition Act, which was
recently signed by the President, would primarily address the restraint of trade and
unfair competition in the country. This act would promote opportunities, encourage
private investments, facilitate technology development and transfer and enhance
resource productivity1. Further, the said act focuses on enhancing economic efficiency
and promotes free and fair competition in trade, preventing economic concentration, and
penalizing all forms of anti-competitive agreements 2. Also, this act is deemed to prohibit
the abuse of dominant position3 - monopoly and duopoly - not only for the purpose of
giving more benefits to the society, but also to suppress some unlawful exercise of their
control and power.
An example of abuse of dominant position which falls under the Competition act
was the recent issues on the garlic industry. In 2014, the Department of Justice found
1 Chapter II, Sec. 2.
2 Chapter II, Sec. 2, Paragraph a,b,c
3 Chapter III, Sec. 15

out some illegal acts in the garlic industry. Based on its report, there was a sudden
increase in the price of garlic per kilo. It reached as high as P287.00/kilo which was
normally averaging P150.00/kilo, thereby increasing by more or less 100% from the
average price. After the investigation of the anomaly, the main findings were there was
no shortage of supply and there were more than adequate stocks of garlic; majority of
the import limits issued was granted only to one preferred group; and due to a
cornering of supply, the group could dictate high prices 4. It was held that the people
were charged with graft and corruption. This case is definitely covered by the
Competition act specifically under Section 15 (d) for engaging in monopolistic behavior.
If this statute had been enacted way before now, crimes as such would have been
lessened or even prevented.
Statutes that are somewhat related to Commission Act were already enacted
before. Some of these are Executive Order No. 219, Executive Order No. 59, and
Executive Order No 109. All of which, in some sense, have some sort of connection with
Republic Act 10667 in the sense that they are directed to one goal: liberalization and
healthy competition establishment in our country.
One of the monopolistic industries that were affected by the E.O. 219 was the
airline industry, specifically the Philippine Airlines (PAL). PAL used to be the dominant
position in the airline industry but when the Philippine government liberalized the
countrys domestic airline industry through E.O. 219, regulations on tariffs and fares
were reduced5. And because it gave opportunities to new entrants, the country has now
three airlines PAL, Cebu Pacific, and Air Philippines. Thus, liberalized and healthy
competition are established.
On the other hand, the negative effect of E.O. No. 59 and E.O. 109 on the part of
the owners was also felt in the telecommunication industry. The Philippine Long
Distance Company (PLDT), a private monopoly, dominated the said industry until E.O.
59 and E.O. 109 were enacted. The former mandated the interconnection of all carriers
4 http://www.doj.gov.ph/news.html?title=DOJ:%20High%20garlic%20prices
%20caused%20by%20collusion,%20cartel&newsid=306
5 http://www.cba.upd.edu.ph/phd/docs/manuela_paper.pdf

while the latter opened the basic telephone service to new entrants 6. As a result, the
telecommunication sector is now duopoly, a competition between PLDT and Globe
Telecom. Thus, liberalized and healthy competition are established.
Evidently, in all efforts of the government for the protection of people, and
improvement and progress of the economy, through the Competition Act, society would
now be more hopeful for the act would safeguard competitive conditions and provide
equal opportunities. As much as dominant corporations perceive the said act as a threat
as far as net profits and new entrants, in compliance with the particular act shall protect
the abusive manner of some criminal persons, create better products and services at
reasonable rates, and enhance productivity and innovation through competitions,
thereby promoting healthy competition, liberalization and advance civilization in our
society.

6 http://dirp4.pids.gov.ph/ris/dps/pidsdps0823.pdf