The Philippine Competition Commission (PCC) said companies has until early August to correct their anticompetitive practices and agreements, as required in the transitory period that prevents the watchdog from slapping criminal or administrative penalties on erring players.
In a press conference in Pasig City yesterday, PCC Commissioner Stella Alabastro-Quimbo said that the enabling law allowed a two-year transitory period that would start after the effectivity of Republic Act (RA) 10667.
Within this time frame, erring firms are given a chance to correct any possible violations of the law.
Alabastro-Quimbo said fines would only be charged beginning Aug. 9.
“We understand that there are anticompetitive agreements that have already been in existence before the law was passed. So we are giving firms a chance to restructure their businesses or to renegotiate their agreements in order to be sure that they comply with the law,” she said.
According to Section 53 of the law, this curing period applies to affected parties that may have violated the law through “an existing business structure, conduct, practice or any act.”
The competition law, which was passed in 2015, outlines a wide range of prohibited acts, including price fixing and the abuse of a market player’s dominant position through activities such as the sale of goods or services below cost to drive out competition.
An offense may lead to an administrative penalty that could cost P100 million to P250 million.
In the case of criminal penalties, affected parties could be imprisoned for two to seven years and slapped a fine of up to P250 million.