Foreign investors seek ‘balanced’ competition law
MANILA, Philippines—The Joint Foreign Chambers is urging the government to come out with an overall competition policy that will protect and promote market competition and at the same time eliminate competition-restricting laws.
In a position paper released Wednesday, the group said the main objective of competition policy would be “to create or maintain the competition process, not to protect specific competitors, with the ultimate goal of boosting the welfare of customers and final consumers.”
“Protecting the competitive process is expected to lead to maximize dynamic efficiencies in economic activity and enhancing consumer welfare,” the position paper stated.
“The enforcement of competition law and policy also contributes positively to other public policies. It can contribute to policies that encourage innovating product and processes,” it further said. “Also, competition law and policy, by promoting an efficient reallocation of resources, may contribute to economic growth and sound employment policy. Enhanced market access by new market players will lead to an increase of overall employment.”
Considering the benefits of a real competitive market, JFC urged the government to come out, at the soonest possible time, with a Competition Law, which would be part of the overall competition policy.
Whatever Competition Law would be passed should ensure prohibition of autonomous business practices such as restrictive agreements, abuses of dominant position, and anti-competitive mergers, the group said.
Apart from a Competition Law, the group said the government should also establish supervisory rules and principles that promote market efficiency and competition. These should also cover regulatory reforms aimed at reducing administrative barriers to market and removing law-induced competition-restricting practices.
To ensure the proper implementation of competition policy, JFC said a competition enforcement agency and competition courts should be put in place.
In the absence of a Competition Law, Malacañang issued Executive Order 45 in June, designating the Department of Justice as the country’s Competition Authority.
Meanwhile, the House of Representatives has come up with a consolidated competition bill, while the Senate is on its way to completing the same.
