Article 33Supplement v1, p. 33

COMMERCIAL LAWS SUPPLEMENT

(b) Review proposed mergers and acquisitions, determine

thresholds for notification, determine the requirements

and procedures for notification, and upon exercise of its

powers to review, prohibit mergers and acquisitions that

will substantially prevent, restrict, or lessen competition in

the relevant market;

(c) Monitor and undertake consultation with stakeholders

and affected agencies for the purpose of understanding

market behavior;

(d) Upon finding, based on substantial evidence, that an

entity has entered into an anti-competitive agreement or

has abused its dominant position after due notice and

hearing, stop or redress the same, by applying remedies,

such as, but not limited to, issuance of injunctions,

requirement of divestment, and disgorgement of excess

profits under such reasonable parameters that shall be

prescribed by the rules and regulations implementing

this Act;

(e)

Conduct

administrative

proceedings,

impose

sanctions, fines or penalties for any noncompliance with

or breach of this Act and its implementing rules and

regulations (IRR) and punish for contempt;

(f)

Issue

subpoena

duces

tecum

and subpoena ad

testificandum

to

require

the

production

of

books,

records, or other documents or data which relate to any

matter

relevant

to

the

investigation

and

personal

appearance before the Commission, summon witnesses,

administer oaths, and issue interim orders such as show

cause orders and cease and desist orders after due notice

and hearing in accordance with the rules and regulations

implementing this Act;

(g) Upon order of the court, undertake inspections of

business premises and other offices, land and vehicles, as

used by the entity, where it reasonably suspects that

relevant books, tax records, or other documents which

relate to any matter relevant to the investigation are kept,

in order to prevent the removal, concealment, tampering

with,

or destruction of the books, records, or other

documents;

(h)

Issue

adjustment

or

divestiture orders including

orders for corporate reorganization or divestment in the

manner and under such terms and conditions as may be

prescribed in the rules and regulations implementing this

Act. Adjustment or divestiture orders, which are structural

remedies, should only be imposed:

(1) Where there is no equally effective behavioral remedy;

or

(2) Where any equally effective behavioral remedy would

be more burdensome for the enterprise concerned than

the structural remedy. Changes to the structure of an

enterprise as it existed before the infringement was

committed

would

only

be

proportionate

to

the

substantial risk of a lasting or repeated infringement that

derives from the very structure of the enterprise;

(i) Deputize any and all enforcement agencies of the

government or enlist the aid and support of any private

institution,

corporation,

entity

or

association,

in

the

implementation of its powers and functions;

(j)

Monitor

compliance

by

the

person

or

entities

concerned with the cease and desist order or consent

judgment;

(k) Issue advisory opinions and guidelines on competition

matters for the effective enforcement of this Act and

submit annual and special reports to Congress, including

proposed legislation for the regulation of commerce,

trade, or industry;

(l) Monitor and analyze the practice of competition in

markets that affect the Philippine economy; implement

and oversee measures to promote transparency and

accountability;

and

ensure

that

prohibitions

and

requirements of competition laws are adhered to;

(m)

Conduct,

publish,

and

disseminate

studies

and

reports on anti-competitive conduct and agreements to

inform and guide the industry and consumers;

(n)

Intervene

or

participate

in

administrative

and

regulatory proceedings requiring consideration of the

provisions of this Act that are initiated by government

agencies

such

as

the

Securities

and

Exchange

Commission, the Energy Regulatory Commission and the

National Telecommunications Commission;

(o)

Assist

the

National

Economic

and

Development

Authority, in consultation with relevant agencies and

sectors, in the preparation and formulation of a national

competition policy;

(p) Act as the official representative of the Philippine

government in international competition matters;

(q) Promote capacity building and the sharing of best

practices with other competition-related bodies;

(r) Advocate pro-competitive policies of the government

by:

(1) Reviewing economic and administrative regulations,

motu proprio or upon request, as to whether or not they

adversely

affect

relevant

market

competition,

and

advising

the

concerned

agencies

against

such

regulations; and

(2) Advising the Executive Branch on the competitive

implications

of

government

actions,

policies

and

programs; and

(s) Charging reasonable fees to defray the administrative

cost of the services rendered.

Section 13. Office for Competition (OFC), Powers and

Functions. — The OFC under the Department of Justice

(DOJ-OFC) shall only conduct preliminary investigation

and undertake prosecution of all criminal offenses arising

under this Act and other competition-related laws in

accordance with Section 31 of Chapter VI of this Act. The

OFC shall be reorganized and allocated resources as may

be required therefor to effectively pursue such mandate.

CHAPTER III PROHIBITED ACTS

Section 14. Anti-Competitive Agreements. –

(a)

The

following

agreements,

between

or

among

competitors, are per se prohibited:

(1) Restricting competition as to price, or components

thereof, or other terms of trade;

(2) Fixing price at an auction or in any form of bidding

including cover bidding, bid suppression, bid rotation and

market allocation and other analogous practices of bid

manipulation;

(b)

The

following

agreements,

between

or

among

competitors

which

have

the

object

or

effect

of

substantially

preventing,

restricting

or

lessening

competition shall be prohibited:

(1) Setting, Kmiting, or controlling production, markets,

technical development, or investment;

(2) Dividing or sharing the market, whether by volume of

sales or purchases, territory, type of goods or services,

buyers or sellers or any other means;

(c) Agreements other than those specified in (a) and (b) of

this

section

which

have

the

object

or

effect

of

substantially

preventing,

restricting

or

lessening

competition shall also be prohibited: Provided, Those

which

contribute

to

improving

the

production

or

distribution

of

goods

and

services or to promoting

technical

or

economic

progress,

while

allowing

consumers a fair share of the resulting benefits, may not

necessarily be deemed a violation of this Act.

An entity that controls, is controlled by, or is under

common control with another entity or entities, have

common economic interests, and are not otherwise able

to decide or act independently of each other, shall not be

considered competitors for purposes of this section.

Section 15. Abuse of Dominant Position. – It shall be

prohibited

for

one

or

more

entities

to abuse their

© Compiled by RGL

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