SIXTEENTH CONGRESS OF THE ) 
REPUBLIC OF THE PHILIPPINES) 
First Regular Session 
) 
SENAT~ 
S.B.No. 
1113 
.:ierultt 
{~ffl;" (If 14' ,'.n.I"'~ 
'13 ' JUl -4 1\10 :34 
'RE,C 
Introduced by Senatol' TEOFISTO "TG" GUINGONA In 
EXPLANATORY NOTE 
Bound by a clear Constitutional mandate, "the State shall regulate or prohibit monopolies 
when the public interest so requires, No combinations in restraint of trade or unfair competition 
spall be allowed (Article 12, Section 19 of the Constitution):' 
However, historical records reveal that through the years, different firms have committed 
prejudicial acts of market manipulation especially in times of calamities and national shortages, 
As a result, the consumers suffer while the competitive position of small and medium enterprises 
continues to be eroded, 
Fair competition is the best guarantee that consumers, be they individuals or corporations, 
will be in a position to obtain the best products and services for their money, It likewise ensures 
that producers and service-providers will provide the best goods and services at the best prices, 
and that they would do so solely through astute decisions, business acumen and innovation - thus 
allowing other firms to enter into and compete fairly in the market 
In order to acquire more market shares, exploit economies of scale, obtain additional 
business know-how, businesses may acquire other business firms -sometimes even rival firms, 
However, such right has limits, 
It is clear then that the Philippines has in fact a clear competition policy, albeit with 
different enabling laws, and withont a single government entity concerned only with competition 
policy, It is widely believed then that our competition policy will be best implemented if we 
enact and strictly enforce a comprehensive competition law, 
Among others, this bill seeks to define and enumerate prohibited acts that restrict, 
prevent, limit, andlor distort competition, It likewise seeks to establish a Philippine Fair 
Competition Commission, an independent agency with the original and exclusive jurisdiction to 
implement the national competition policy and to attain the objectives and purposes of this 
proposed measure, It likewise seeks to provide strict penalties for anti-competitive acts and/or 
omissions, 
The passage ofthis measure is sincerely sought 
II 
Senator 


SIXTEENTH CONGRESS OF THE ) 
REPUBLIC OF TIIE PHILIPPINES . ) 
First Regular Session 
) 
SENATE 
S. B. No. 
473 
.sl?rtZ1t~ 
(~H\;t tlf Ht- lii-r<ubr·v 
'13 
JUL -4 A10 :34 
Introduced by Senator TEOFISTO "TG" GUINGONA m 
AN ACT TO IMPLEMENT THE COMPETITION POLICY UNDER THE 
CONSTITUTION, STRENGHTEN THE PROIllBITION AGAINST ABUSE OF 
MONOPOLY POWER OR DOMINANT POSITION, PREVENT CARTELS, 
COMBINATIONS IN RESTRAINT OF TRADE AND OTIIER ANTlCOMPETlTIVE 
PRACTICES AND CONDUCT, AND FOR OTlIER PURPOSES. 
Be it enacted by the Senate and the House of Representatives of the Philippines in Congress 
assembled: 
CHAPTER I 
GENERAL PROVISIONS 
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SECTION 1. Title.· This Act shall be known and cited as the "Competition Policy Act of2013." 
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SEC. 2. :Qeclaratioll of Policy. - Pursuant to the constitutional mandate ·that the State shall 
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regulate or prohibit monopolies when the public interest so requires and that no combinations in 
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restraint or trade or unfair competition shall be allowed, the State shall: . 
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(a) regulate business conduct with the objective of fomenting a business climate 
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conducive to productivity and sustainability, where businesses compete in a level playing 
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field, using pnly innovation, business acumen, astute marketing, diligence, and ability to 
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raise capital through legitimate means, and in general offering quality goods and services 
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that reflect the best value for customers. 
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(b) safeguard the welfare of consumers, especially the more vulnerable sectors of the 
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economy, most especially in times of calamities, natural disasters, and other disturbances 
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affecting the daily routine and business of persons in the Philippines; 
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(c) penalize all fonns of unfair trade, anti-competitive conduct and combinations in 
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restraint of trade, with the objective of protecting consumer welfare and advancing 
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domestic and international trade and economic development; 
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(d) promote and enhance productivity, innovatIOn, economic efficiency, and free, full and 
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fair competition in trade, industry and all commercial economic activities; and 
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(e) prevent or reverse the concentration of economic power in a single or a few persons or 
related persons in order to preclude a situation where they - to the detriment of 
competitors or new entrants to the market, suppliers, and the consumers - threaten to 
control the production, purchase, trade, provision of goods and services, in order to stifle 
competition, distort, manipulate or constrict the discipline of free markets, or increase 
market prices in the Philippines. 
SEC. 3. ~cope and Application. - This Act shall be enforceable within ·the territory of the 
Republic of the Philippines and shall apply to all areas of trade, industry and commercial 
economic !activity. The Act shall apply to: (a) all firms as defined . hereunder and all their 
commercial agreements, actions or transactinns involving goods, services or intellectual 
property; and, (b) all agents, officers, employees, partners, owners, directors, consultants, 
stockholders, representatives, managers, supervisors, and all other natural persons who, acting on 
behalf of juridical persons shall authorize, engage or aid in the commission of restrictive 
practices prohibited under this Act. 
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The absence of an employer-employee relationship under labor relations laws and case law shall 
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not be a defense for any violation of this Act. It shall likewise be applicable to international trade 
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having direct, substantial and reasonably foreseeable effects in trade, industry or commerce in 
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the Republic of the Philippines including those that result from acts done outside the Republic of 
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. the Philippines and to acts committed by foreign multinational corporations or foreign entities 
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operating in the Philippines, whether or not organized under Philippine laws, including their 
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subsidiaries, branches, agents, regional offices, and other related entities such as joint ventures. 
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In order to allow affected parties time to renegotiate agreements or restructure their business to 
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comply with the new competition law the penal provisions of this Act shall be imposed one (1) 
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year after its effectivity. During the said one (1) year period, the Pbilippine Fair Competition 
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Commission shall undertake an advocacy program of the provisions of this Act to the 
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stakeholders and the general public. 
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SEC. 4. Definition of Terms. - As used in this Act, the following terms shall be defined as: 
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(a) "Agreements" shall refer to any type or form of contrac1; arrangemen1; understanding, 
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undertaking, concerted action, collective recommendation, parallel action, whether 
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formal or informal, written or oral; 
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(b) "Cartel" shall mean a combination of firms or persons, providing goods and/or services in 
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relevant markets, acting or joined together to obtain a shared monopoly or ability to control 
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production, purchase, sale and price, or to obtain control in any particular industry or 
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commodity, or a group of firms that agree to restrict trade. It shall also refer to firms or 
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section of firms having common interest designed 1.0 promote the exchange of knowledge 
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resulting from scientific and technical research, exchange of patent rights and standardization 
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of products among themselves with the intent of preventing, restricting or distorting 
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competition; 
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(c) "Commission" shall mean the Phthppine Fair Competition Commission created under this 
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Act. 
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(d) "Competition" shall mean both the economic condition and the process by which 
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economic agents, acting independently in a market, engage in commerce through fair means, 
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offering quality goods and services for value, using solely business acumen, legitimate means 
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of raising capital, innovation, hard work, astute marketing, and rational industrial 
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organization. It also includes a process and a situation where economic agents limit each 
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other's ability to control the prevailing conditions in the market, offer their goods and 
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services to consumers without limiting the ability of their competitors to market their goods 
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or provide services, or without preventing new entrants to the market. Finally, it likewise 
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includes a business climate where a firm or combination of related or unrelated firms do not 
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impose their will on their suppliers to the detriment of the latter, the competitors of the 
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former, and the consumers. 
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(e) "Control" shall refer to at least fifty-one percent (51 %) ownership, directly or indirectly, 
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of a firm or a group of firms by another firm; 
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(f) "Dominant Position" shall refer to a situation where a firm, either by itself or acting with 
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other firms, is in a position to control a relevant market for the sale of a particular good or 
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service by fixing its prices, excluding competitor firm, or controlling the market in a specific 
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geographical area. It shall also mean a situation where under the pain of boycotting or 
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refusing to sell their supplier's products, the retailers, wholesalers, distributors, with 
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dominant position can force suppliers and manufacturers to provide discounts not granted to 
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competitors. Finally, it shall also include a situation where the sellers are able to give 
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preferential treatment to their own "generic" brands, to the detriment of manufacturers and 
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distributors of other goods also sold by these sellers. 
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a. -"Firms" shall include any person, natural or juridical, 
partnership, combination or association in any form, whether 
incorporated or not, domestic or foreign, including those owned or 
controlled by the government, engaged directly or indirectly in any 
economic activity: Provided, That, two firms, one of which is 
controlled by the other, shall be treated as one finn: Provided 
further, That two or more 
firms that are controlled by a single firm, or controlled by a 
common parent corporation or controlled by related entities, shall 
be treated as a single firm; 
(g) "Goods" and "Services": "Goods" include all types of tangible and intangible property 
that could be bought and sold, and the possession and/or ownership of which could be 
transferred in whole or in part, temporarily or permanently; 
"Services" shall refer to the provision of things of value or articles or items that could be 
used by one person, whether natural or juridical, to another through human interaction or 
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through the use, without transfer of ownership, of the facilities of the provider by the 
Client, or a combination of both. It shall include all non-tangible goods. It is the non-
material equivalent of a good, consumed at the point of sale and does not result in 
ownership; 
(h) "Market" shall refer to a place or venue for commercial activity, which may be a 
barangay, city, province, region, the whole area of the Philippines, or which may extend 
beyond the borders of the Republic of the Philippines, where articles are bought or sold. 
It shall also refer to the geographICal or economic extent of commercial demand; 
(i) "Mergers" and "Consolidations" refer to transactions or contracts where 1;Wo or more 
undertakings, prevlOusly independent of one another, join together, regardless of the form 
by which such transactions or contracts are structured. These would include: 
L two (2) or more corporations or firms merge into a single firm which shall be 
one of the constituent firms; 
2. two or more firms consolidate into a new single firm 'which shall be the 
consolidated firm; 
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3. one firm takes sale control of, acquires, or takes over the whole or part of 
another; 
4, one firm or related firms take control of all or substantially all of the 2 assets of 
the another.firm; 
5. one firm or related firms take control of the majority shares of stock, either by 
vote or value, or other share capital of another entity; 
6. two or more firms acquire joint control over another firm (joint ventures); and 
7, other transactions, whereby one or more firms acquire control over one or more 
firms, such as through interlocking directorates. 
(j) "Monopoly" shall mean a privilege' or nndue advantage of one or more firms, 
consisting in the exclusive right to carry on a particular business or trade, andlor 
manufacture a particular product, article or object of trade, commerce or industry. It is a 
form of market structure in which one or only a few firms dominate the total sales of a 
product or service; 
(k) A "monopsony" exists in a market that has only a single buyer or a cartel of buyers. 
(I) "Relevant Market" shall refer to the line of commerce that must be delineated in order 
to determine whether competition has been restrained or could potentially be restrained. 
It shall also refer to the geographic area involved, including all reasonably substitutable 
goods, and all competitors, from which consumers could purchase should the goods or 
services in question. The relevant market combines the product market and the 
geographic market, defined as follows: 
i. a relevant product market comprises all those products andlor 
services which are regarded as interchangeable or substitutable by 
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the consumer by reason of the products' characteristics, their pnces 
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and their intended use; and 
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ii. a relevant geographic market comprises the area in which the 
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firms concerned are involved in the supply of products or services 
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and in which the conditions of competition are sufficiently 
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homogeneous. 
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CHAPTER II 
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PROHIBITED ACTS 
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SEC. 5. Collusive Couducts and Anti-competitive Ag"eements. - Unless otherwise exempted, 
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related or unrelated firms are prohibited from entering into any form of horizontal or vertical 
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agreement, contract, understanding, common or collective recommendation, nOr shall they 
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engage in concerted or parallel actions directed at suppressing, undennining, distorting or 
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restricting competition. 
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a) "Horizontal agreement" means an agreement entered into between two or more 
enterprises operating at the same level in the market; 
b) "Vertical agreement" means an agreement entered into between two or more 
enterprises, each of which operates, for the purposes of the agreement, at a different level 
of the production or distrib).ltion chain, and relating to the conditions under which the 
parties may purchase, sell or resell certain goods or services; 
Such collusive conducts or anti-competitive agreements shall include the following. 
(a) Price-Fixing- Any agreement among competitors, directly or indirectly, to raise, 
suppress, fix or otherwise maintain the price and other terms and conditions at which 
their goods and services are sold such as, but not limited to, establishing or adhering to 
price discounts, holding prices firmly, eliminating or reducing discounts, adopting a 
standard or fonnula for computing prices, maintaining certain price differentials between 
different types, sizes or quantities of products, adhering to a minimum fee or schedule 
and other analogous schemes with the purpose and effect of creating a monopoly or cartel 
or lessening competition. 
(b) Bid Rigging - Any agreement among bidders or between the bidders and the 
auctioneer to fix price at auctions or in any other fonn of bidding, with the purpose and 
effect of creating a monopoly or cartel, or lessening competition such as, but not limited, 
to cover bidding, bid suppression, bid rotation and market allocation and other analogous 
pr\lctices of bid manipulation. In determining whether there is price fixing or bid rigging, 
the following circumstances may be considered: 
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(1) generally, any considered evidence that two sellers of 
similar goods have agreed to set the price of their goods, to 
sell only a certain amount of their goods, or to sell only to a 
limited number of buyers or consumers; 
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(2) a drastic change in prices of goods and services 
involving more than one seller of similar goods of different 
brands, particularly if the changes in prices take place in 
equal amount and about the same time; 
(3) a seller refusing to sell based on an agreement with a 
competitor; 
(4) the same firm has repeatedly been the low bidder who 
has been awarded contracts for a certain service or a 
particular bidder seems to win bids on a fixed-rotation; 
(5) there is an unusual and unexplainable difference 
between the winning bid and all other bids; and 
(6) the same bidder bids substantially higher on some bids 
than on others, and there is no logical cost reason to explain 
the difference. 
(c) the limitation or control of the production or distribution, or the technical 
development, or of the investments. 
(d) assignment of markets or the assignment of sources of supplies; 
( e) unequal treatment in the sale or purchase of goods or provision of services that puts 
one or more competitors at a disadvantage. 
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(f) Monopsony.- A arrangement or a practice where a cartel or. a group of firms forces 
sellers, producers, service providers to accept payment below market price, whether in 
the form of cash, credit or any other consideration, in exchange for their goods and 
services. This shall also include an arrangement where the cartel or its related entities will 
provide credit to the sellers, producers, and service providers only if they agree to sell at 
below market price and/Qr sell all of their products and render all of their services to the 
creditor or the cartel, or any member thereof, or to any person designated by the creditor, 
cartel, or any member of the latter. 
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(g) The subordination of the perfection of contracts to buy or sell goods or services to the 
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acceptance by the buyers or sellers of supplementary obligations which, by their nature or 
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pursuant to commercial usage, have no connectiori with the subject matter of the contract 
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There shall be a prima facie case for the existence of an anti-competitive agreement or 
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collusive conduct if and when the Commission finds that two or more firms that are ostensibly 
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competing for the same relevant market actually perform uniform or complementary acts among 
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themselves which tend to bring about artificial and unreasonable increase, decrease or fixing in 
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the price of any goods or when they simultaneously and unreasonably increase, decrease or fix 
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the prices of their seemingly competing goods thereby lessening competition in the relevant 
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market among themselves. 
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SEC. 6. Abuse of Dominaut Position. - It shall be unlawful for a firm, acting alone, or in 
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concert with one or more firms to abuse their dominant position by engaging in unfair methods 
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of competition, or in tUlfair or deceptIVe trade practices, or entering into combinations in the 
form of trust or otherwise, or conspiracy, for the purpose of preventing, restricting, or distorting 
competition. Abusive conduct or agreements such as, but not limited to, any of the following, 
shall be deemed to fall under the crime of abuse of dominant position: 
(a) iPredatory Behavior Towards Competitors" Any agreement or conduct, including, but 
not1limited to, selling goods or rendering services at below relevant cost with the intent of 
driving competitors out of the market, or creating barriers to entry; 
(b) Monopsony.- A arrangement or a practice sellers, producers, servIce providers are 
compelled to accept payment below market price, whether in the form of cash, credit or 
any other consideration, in exchange for their goods and services. This shall also include 
an arrangement where the firm with dominant position or its related entities will provide 
credit to tlie sellers, producers, and service providers only if they agree to sell at below 
market price and/or sell all of their products and render all of their services to the firm in 
possession of dominant position, the creditor, or to any person designated by them. 
(c) Limitation and Control of Markets " Any agreement to limit or control production, 
markets, technical development, or investment with the purpose and effect of creating a 
monopoly or cartel, or lessening competition; 
(d) Market Allocation - Any agreement to divide the market, whether by volume of sales 
or purchase or by territory, by type of goods sold, by customers or sellers or by any other 
means, with the purpose and effect of creating a monopoly or cartel, or lessening 
competition; 
(e) Arrangements to Share Markets or Sources of Supply" Any agreement to share 
markets or sources of supply of raw materials, with the purpose and effect of creating a 
monopoly or cartel, or lessening competition; 
(1) Price Discrimination" Any agreement prescribing or charging, directly or indirectly, 
discriminatory pricing terms or conditions in the supply or purchase of goods of like 
grade and quality with the purpose and effect of creating a monopoly or cartel, or 
substantially lessening competition: That nothing contained herein shall be construed to 
prohibit permissible price differentials tUlless the same shall have the effect of 
preventing, restricting or distorting competition: Provided further, That for the purpose of 
this section, the following shall be considered permissible price differentials: 
(1) Socialized Pricing " Socialized pricing for the less 
fortlUlate sectors of the economy; 
(2) Volume Discounts" Price differentials which reflect an 
allowance for differences in the cost of manufacture, sale, 
or delivery resulting from differing methods or quantities in 
which the goods are sold or delivered to the purchasers; 
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(3) Competitive Pricing - A price differential or other terms 
of sale in response to the competitive price of payments, 
selvices or facilities furnished by a competitor; 
(4) Bona fide Selection of Customers - The selection of 
customers on bona fide transaction; and 
(5) Price Differentials Due to Changing Market Conditions 
or Marketability of Goods - Price changes from time to 
time in response to changing conrutions affecting the 
market or the marketability of the goods concerned such as, 
but not limited to, actual or imminent deterioration of 
perishable goods, obsolescence of seasonal goods, distress 
sales under court process, or sale on good faith in 
discontinuance of business. 
(6) Price differentials providing for lower prices for cash payments. 
(g) Exclusivity Arrangement • Any agreement imposing restrictions on the lease or 
contract for sale or trade of goods concerning where, to whom, or in what forms goods 
may be sold or traded, such as, but not limited to, fixing prices, or giving preferential 
discounts, or rebate upon such price, or imposing conditions not to deal with competing 
f!fms, where the purpose of such agreement is to lessen competition: That nothing 
contained herein shall prohibit or render unlawful permissible franchising, licensing or 
exclusive distributorship agreements; 
(h) Tie·In Arrangements • Any agreement making the supply of particular goods 
dependent upon the purchase or lease of other goods from the supplier or his consignee, 
wh'ere the purpose and effect of such sale or lease or such condition is to substantially 
lesien competition or to create a monopoly or cartel; 
(i) The subordination of the perfection of contracts to buy or sell goods or services to the 
acceptance by the buyers or sellers of supplementary obligations which, by their nature or 
pursuant to commercial usage, are not integral to the goods or services being purchased. 
G) Unequal treatment in the sale or purchase of goods or provision of services that puts 
one or mo-re competitors at a disadvantage. 
(k)Unjustified refusal to sell goods or provide services. 
(I) Boycott. Any concerted refusal to sell or conspiracy not to sell or to stop doing 
business on the part of the suppliers of any goods, unless for a legitimate purpose. 
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The acts described under this Section shall remain prohibited regardless of the manner 
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by which dominant position was obtained. 
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SEC. 7. Anti-competitive Mergel'S and Consolidations. - No person or firm shall be a party to 
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any merger or consolidation and no finn engaged in commerce Of trade shall acquire, directly or 
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indirectly, any part of the stock or other share capital, or any part of the assets, of one or more 
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firms engaged in any line of commerce or trade where the effect of such merger or consolidation 
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or acquisition of such stocks, share capital, or assets, or of the use of such stock by voting or 
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granting· of proxies or otherwise maybe to substantially lessen competition, or tend to create a 
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monopoly. 
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(a) Pennissible Stock or Asset Acquisition or Ownership. - Nothing contained herein, 
however, shall be construed to prohibit a corporation from causing the fonnation of 
subsidiary corporations, or from owning and holding all or part of the stock of such 
suBsidiary corporations, for the actual carrying on of their immediate lawful business, or 
th9 natural and legitimate branches or extensions thereof. 
(b) Notification Prior to Stock or Asset Acquisition. - No finn shall acquire, directly or 
indirectly, the shares of stock or assets of any other firm, if as a result of the acquisition, 
the acquiring finn would own twenty percent (20%) or more of the shares of stock, other 
share capital, or assets of the acquired finn, unless, the acquiring and selling finn notify, 
prior to the conclusion of the agreement fOf such acquisition and in the prescribed fonn, 
the Commission of such proposed acquisition. Only the acquiring finn is required to 
make the notification in a tender offer. The contemplated acquisition shall he deemed 
approved, unless the Commission, within thirty (30) calendar days from receipt of the 
notification, orders the acquiring finn to show cause why the proposed acquisition shall 
not be declared as prohibited under this Act The show cause order shall set forth the 
facts upon which it is based. The acquiring or selling firm may contest the show cause 
order, in which case, the proposed acquisition shall be considered enjoined until the 
Commission shall have rendered a decision on the proposed acquisition after due notice 
and hearing, in accordance with the procedure prescribed herein for the disposition of a 
show cause order. 
(c) Transactions Exempt from Prior Notice Requirement - The following classes of 
transactions are exempt from the prior notice requirement under this Section: 
(1) Acquisition of goods or realty transferred in the ordinary course of business; 
(2) Acquisitions of bonds, mortgages, deeds of trust, or other obligations which 
are not voting securities; 
(3) Acquisitions of voting securities ofan issuer at least fifty Percent (50%) of the 
voting securities of which are owned by the acquiring finn prior to such 
acquisition; 
(4) Transfers to, or from, government agencies or instrumentalities, including 
government-owned or controlled corporations; 
(5) Transactions exempted from the provisions of this Act and other proper and 
applicable laws; 
(6) Acquisitions, solely for the purpose of investment, of voting securities, if as a 
result of such acquisition the securities acquired or held do not exceed ten percent 
(10%) of the outstanding voting securities of the issuer; 
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(7) Acquisitions of voting secuntles pursuant to the preemptive rights of the 
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acquiring firm; or, if, as a result of such acquisition, the voting securities acquired 
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do not increase, directly or indirectly, the acquiring firm's per centum share of 
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outstanding voting securities of the issuers; or 
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(8) Such other acquisitions, transfers, or transactions which the Commission may 
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declare as are not likely to violate the provisions of this Act or any other proper 
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and applicable law. 
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CBAPTERIll 
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PHILIPPINE !<'Affi COMPETITION COMMISSION 
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SEC. 8. Philippine Fail' Competition Commission. - To implement the national policy and 
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attain the objectives and purposes of thIS Act, an independent Commission is hereby created, 
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which shall be known as the Philippine Fair Competition Commission (pFCC), hereinafter 
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referred to as the Commission, and which shall be organized within sixty (60) days after the 
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approval of this Act. To ensure that the Commission is organized within the mandated period and 
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to ensure that the provisions of the law are followed with regard to its structure, a Task Force to 
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be composed of members from the Office of the President, The Civil Service Commission, Tariff 
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Commission, Department of Trade and Industry, Departtnent of Justice, and the Departtnent of 
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Budget and Management shall be created. 
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For budgetary purposes, the Commission shall be under the Office of the President. 
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(a) Composition. - The Commission shall be composed of a Chairman and four (4) 
Associate Commissioners. The Commissioners shall be citizens and residents of the 
Philippines, at least fOlty (40) but not more than sixty-five (65) years of age, of good 
moral character and of recognized probity and independence. The Chairman and two (2) 
of the Associate Commissioners shall be members of the Philippine Bar and the 
remaining two (2) shall be of recognized competence in the field of economics preferably 
in industrial organization economics, or [mance, commerce, accounting or management 
They must have been in the active practice of their professions for at least ten (10) years, 
but must not have been candidates for any elective national or local office in the 
immediately preceding elections, whether regular or special. 
(b j Term of Office. - The Chairman and the Associate Commissioners shall be appointed 
byi the President of the Philippines. The term of office of the Chairman and the Associate 
Cdmmissioners shall be six (6) years without reappointment. The Chairman shall hold 
office for six years and of the first four (4) Associate Commissioners, two (2) shall hold 
office for a term of four (4) years and two (2) for a term of two (2) years. In case a 
vacancy occurs before the expiration of· the term of office, the appointment to such 
vacancy shall be only for the unexpired term of the predecessor; 
( c) Prohibition and Disqualifications. - The Commissioners shall not, during their tenure, 
hold any other office of employment. They shall not, during their tenure, directly or 
indirectly practice any profession, participate in any business, or be financially interested 
in any contract with, or any franchise, or special privileges granted by the government or 
10 


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any subdivision, agency, or instrumentality thereof, including government-owned and 
controlled corporations of their subsidiaries. They shall strictly avoid conflict of interest 
in the conduct of their office. They shall not be qualified to run for any office in the 
election immediately succeeding their cessation from office. They shall not be allowed to 
appear or practice before the Commission for two (2) years following their cessation 
from office. 
No spouse or relative by consanguinity or affinity within the fourth civil degree and no 
former law, business, or professional partner or associate of any of the Commissioners, 
the Chairman and the Secretary of the Commission may appear as counselor agent on any 
matter pending before the Commission or transact business directly or indirectly therein 
during hislber incumbency and within one (1) year from hislber cessation of office. 
( e) Compensation of Commissioners. - The Chairman of the Commission shall hold the 
rank of and shall have the privileges and compensation equivalent to that of a Department 
Secretary or Presiding Justice of the Court of Appeals, whichever is higher, while the 
As~ociate Commissioners shall each hold the rank of and shall have the privileges and 
compensation equivalent to that of a Department Undersecretaty or Associate Justice of 
th~ Court of Appeals, whichever is higher. 
(f) Quorum. - Three (3) members of the Commission shall constitute a quorum and the 
affirmative vote of three members (3) shall be necessary for the adoption of any rule, 
ruling, order, resolution, decision or other acts of the Commission en bane 
(g) Principal Office, Branch and Venue. - The Commission shall hold its principal office 
in Metro Manila but it may, conduct hearings outside of Metro Manila upon prior notice 
for inquiries, studies or any other proceedings required for the proper and efficient 
exercise of its power and the discharge of its duties. It may establish branch offices 
outside of Metro Manila as may be necessary for the effective discharge of its functions. 
(h) Staff - The Commission shall appoint, fix the compensation in accordance with the 
Revised Compensation and Position Classification law, determine the status, 
qualifications, and duties of an adequate staff, which shall include an Executive Director 
of the Commission. The Executive Director shall be appointed by the President and shall 
have relevant experience in any of the fields of law, economics, commerce, management 
or finance for at least ten (10) years. Provided, that, he shall be a Career Executive 
Service Officer (CESO). The members of the technical staff, except those performing 
purely clerical functions shall possess at least a Bachelor Degree in the following fines of 
specialization: economics, preferably in industrial organization; law; finance; commerce; 
accounting; or management. 
42 
SEC. 9. Original and Exclusive Jurisdiction. - The Commission shall have original and 
43 
exclusive jurisdiction to enforce, implement and administer the provisions of this Act, its 
44 
implementing rules and regulations, and all other competition laws, and in particular: 
45 
11 


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(a) jPowers of the Commission Upon Prior Notice and Hearing ..• The Commission may 
exercise the following powers, only upon prior notice and hearing: 
(1) Binding Rules- To issue binding rulings; 
(2) Show Cause Order and Decision - To issue show cause orders, and thereafter, 
render decision thereon; 
(3) Consent Judgment - To approve, or disapprove, proposals for consent 
judgment; 
(4) Preliminary Inquiry- To conduct the required preliminary inquiry of cases 
involving violations of this Act and other competition laws; and thereafter, if 
appropriate, to sign and file the proper criminal complaint before the Department 
of Justice; 
(5) Administrative Fines and Penalties - To impose the appropriate administrative 
fines or penalties herein authorized to be imposed; 
(6) Issuance oflnjunctions, Restraining Order, and Cease and Desist Orders. - To 
issue a writ of mandatory injunction, to enjoin or restrain, temporarily or 
permanently, any actual or threatened commission of any or all prohibited or 
unlawful acts or to require the performance of a particular act which, if not 
restrained or performed forthwith, may cause grave or irreparable damage to 
competitors, consumers, or suppliers, or render ineffectual any decision in favor 
of a Palty to a competition dispute. 
(7) Delegation of Power Which Requite Notice and Hearing. - The Commission 
sitting en banc may delegate, on a case to case basis, its power to hear and decide 
any case or matter which require prior notice and hearing, to a division of one (1) 
Commissioner. The resolution of the Commission sitting en hanc making such a 
delegation shall be made part of the records of the case or matter and the 
assignment of a case of matter to a particular division shall be made by means of a 
raille conducted in public; and 
(8) Appeal to the Commission En Banc - Final orders, resolutions, judgments, or 
decisions of a division may be appealed to the Commission sitting en bane, by 
any party adversely affected thereby, within a period of fifteen (15) days from 
receipt of such order, resolution, judgment, or decision on all issues of fact and 
law. The Commissioner whose order, resolution, judgment; or decision is the 
subject of the appeal is disqualified from participating, nor shall he be present, in 
the deliberations and decision of the Commission en banco In case of a tie, the 
appealed order, resolution, judgment, or decision is deemed affirmed. The 
Commission, on its own, or upon motion of a party who has actively participated 
in the llroceedings, order the presentation of additional material evidence as part 
of the appellate proceedings. 
12 


1 
(b) Powers of the CommissIOn Without Hearing. - The Commission shall have the power to 
2 
do the following acts, without hearing: 
3 
4 
(1) Motu Proprio Investigation or Upon Complaint - To investigate, on its own initiative 
5 
or upon the complaint of any person, any and all violations of this Act and other 
6 
competition laws prior to the commencement of a preliminaty investigation, or the 
7 
issuance of a show cause order, or the institution of a civil or administrative action; 
8 
(2) Civil Action. - To attest and file on behalf of the State, civil complaints for damages 
9 
to business or property of the State, arising from a violation of this Act and other 
10 
competition laws; 
11 
(3) Administrative Action. - To attest and file all complaints for appropriate 
12 
administrative relief from, or against, violations of this Act or other trade competition 
13 
laws; 
14 
(4) Request for Assistance. - To require any government agency to lend assistance and 
15 
information necessary in the discharge of its responsibilities under this Act, and examine 
16 
if necessaty, pertinent records and documents in the possession of such government 
17 
agency; 
18 
(5) Industty Studies and Company Profile. - To gather and compile information and 
19 
investigate from time to time, the way a given industty is structured or organized whether 
20 
as a monopoly, oligopoly, or competitive; the way the firms within that indus tty act, 
21 
behave, or conduct themselves in such matters as setting prices, determining output, and 
22 
the resulting performance ofthe industty as a whole; the organization, business, conduct, 
23 
prllctices and management of any person, partnership, or corporation engaged in trade, 
24 
commerce, or industty and its relation to individuals, partnerships, associations, 
25 
cojporations, firms and other business enterprises; 
, 
26 
. (6) Issuance of Subpoena, - To issue subpoena, subpoena duces tecum and subpoena ad 
27 
testificandum in the exercise of its functions, powers and duties under this Act, subject to 
28 
the following standards: 
29 
30 
i, No subpoena shall be issued to require the production or disclosure of trade 
31 
secrets as defined in sub-paragraph (7) hereof; 
32 
ii, A subpoena may be quashed only by means of a motion duly set for hearing 
33 
and on the grounds prescribed by the Rules of Court; 
34 
iii. A person appearing before the Commission, or any of its Divisions, III 
35 
obedience to a subpoena shall be advised, before he is required to testify or 
36 
produce any documentaty or real evidence, of his right to be assisted or 
37 
represented by a counsel of his choice, or if he has none, the Commission shall 
38 
appoint a de officio counsel for him; and of his rights to avail of the immunity 
39 
from prosecution privilege herein prescribed; 
40 
41 
42 
43 
44 
45' 
46 
(7) Annual and Special Reports, etc. - To require, by general or special orders, firms 
engaged in trade, commerce, or industty to file with the Commission in such form as the 
Commission may prescribe, annual or special reports, or answers in writing to specific 
questions, furnishing the Commission such information as it may require as to the 
organization, business, conduct, practices, management and relation to other persons of 
the respective natural or juridical persons or entities filing such reports or answers in 
13 


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writing except that the CommISSIOn shall not require, either by a specific order or by a 
subpoena, the disclosure or production of trade secrets such as a secret formula, pattern, 
device or compilation of information, including names of customers, which is used in 
one's business and which gives one an opportunity to obtain advantage over competitors 
who do not know or use it. Trade secrets shall include a plan or process, tool, mechanism, 
or compound known only to the owner and his employees to whom it is necessary to 
cOifide it; 
(8) Public Disclosure of Information. - To make public, from time to time, such portions 
of the information obtained by it under this Act, except trade secrets and names of 
customers, as it shall deem expedient in the public interest; 
(9) Reports and Recommendations to Congress. - To submit annual and special reports to 
Congress, - including proposed legislation for the regulation of trade, commerce, or 
industry, and provide for the pUblication of its reports and resolutions in such form and 
manner as may be best adopted for public information and transparency; 
(10) Trade Conditions, Domestic and Foreign. - To study, from time to time, trade 
conditions in and with foreign countries where associations, combinations, or practices of 
manufacturers, merchants, or traders, or other conditions, may affect the foreign trade of 
the Philippines, and report to Congress its findings and recommendations thereon as it 
may deem advisable. 
Sec. 10. Jnrisdiction of Regional Tdal Com·ts. - The Regional Trial Court shall have 
jurisdiction over all criminal and civil aspects of the violations of this act. The venue shall be in 
accordance with the Rules of Court. 
CHAPTER IV 
FINES AND PENALTIES 
31 
SEC. 11. Administmtive Penalties. -
32 
33 
(a) Without prejudice to the violation of other laws, any firm that shall be fonnd to have 
34 
violated Sections 8, 9 and 10 of this Act, or any combination thereof, shall, for each and 
3S 
every violation, be punished by a fine of not less than Ten million pesos 
36 
(Phpl0,OOO,OOO.OO) and not exceeding Fifty million pesos (Php50,OOO,OOO.OO) if a 
37 
natural person; by a fine of not less than Two hundred fifty million pesos 
38 
(Php250,OOO,OOO.OO) but not exceeding Seven hundred fifty 
million pesos 
39 
(Php750,OOO,OOO.OO) at the discretion of the Commission. 
40 
41 
In addition, a fine shall be imposed in an amount double the gross proceeds gained by the 
42 
violatorls or double the gross loss suffered by the plaintiffS, whichever is higher. 
43. 
44 
(b) Failure to Comply with an order of the Commission. - In addition to the administrative 
4S 
penalties, any person who fuils or neglects to comply with any term or condition of a binding 
46 
ruling] a cease and desist order or an order for readjustment issued by the Commission, shall 
14 


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1 
pay a fine of not less than Fifty Thousand Pesos (Php50,OOO.OO) for each violation. Each 
2 
violation shall be deemed a separate offense: Provided, That in the case of a violation 
3 
through a continuing failure or neglect to comply, each day of continuance of such failure or 
4 
neglect shall be deemed a separate offense. 
5 
6 
(c)Supply of Incorrect or Misleading Information. - Tn addition to (a) and (b) above, the 
7 
Commission may likewise impose upon persons or entities fines of not less than Five 
8 
Thousand Pesos (php5,OOO.OO) to not more than One Hundred Thousand Pesos 
9 
(phpIOO,OOO.OO) where, intentionally or negligently, they supply incorrect or misleading 
10 
information in any document, application or other paper filed with or submitted to the 
11 
Commission or supply incorrect or misleading information in an application or other paper 
12 
filed with or submitted to the Commission or supply incorrect or misleading information in 
13 
an application for a binding ruling, a proposal for a consent judgment, proceedings relating to 
14 
a show cause order, or application for modification of the Commission's ruling, order or 
15 
approval, as the case may be. 
16 
17 
Sec. 12. C.'iminal Penalties, - Without prejudice to the violation of other laws, any firm that 
18 
shall be found to have violated Sections 8, 9 and 10 of this Act, or any combination thereof, 
19 
shall, for each and every violation, be punished by a fine of not less than Ten million pesos 
20 
(phplO,OOO,OOO.OO) and not exceeding Fifty million pesos (php50,OOO,OOO.OO) if a natural 
21. 
person; by a fine of not less than Two hundred fifty million pesos (php250,OOO,OOO.OO) but not 
22 
exceeding Seven hundred fifty million pesos (php750,OOO,OOO.OO) if a firm, and by 
23 
imprisonment not exceeding ten (10) years, or both, at the discretion of the court. In the 
24 
alternative, a fine shall be imposed in the amount double the gross proceeds gained by the 
25 
violator or double the gross loss suffered by the plaintiffs. 
26 
27 
CHAPTER V 
28 
ENFORCEMENT 
29 
I 
30 
SEC. 13. Preliminal'Y Inquiry. - The Commission shall motu proprio or upon the filing of a 
31 
verified c~mplaint by an interested party or upon referral by the concerned regulatory agency, 
32 
initiate a preliminary inquiry for the enforcement of this Act. 
33 
34 
SEC. 14. Power ove,' acts committed prior to the passage of this law, -Subject to the 
35 
constitutional prohibition on the passage of ex post facto laws, the Commission shall have the 
36 
power to decide on and regulate acts related to competition issues despite the fact that the acts 
37 
complained of were committed or the contracts were perfected or consummated prior to the 
38 
passage of this law. This power shall include orders to break-up mergers and consolidations and 
39 
un-bundle products sold as a package. 
40 
41 
Sec. 15. Powers of Concerned RegnlatOl'Y Ageucies, - Notwithstanding the provisions of the 
42 
preceding section, the exercise of regulatory powers by different government agencies over an 
43 
industry or a sub-sector of an industry shall be cumulative and shall not be construed in any way 
44 
as derogating from the power and authority of the concerned agency; Provided, that: the 
45 
Commission shall have exclusive jurisdiction over competition matters, including all of the 
15 


1 
prohibited acts under this Act and other laws, but can decide on competition issues only after 
2 
requesting and obtaining technical assistance from the regulatory agencies. 
3 
4 
The government agencies shall cooperate and coordinate with one another in the exercise 
S 
of their powers in order to prevent overlap, to share confidential information, or for other 
6 
effective measures. The failure of the regulatory agencies to provide technical assistance or 
7 
opinion after having been given a reasonable time, shall not prevent the Commission from 
8 
performing its functions in a timely manner; Provided, that: in situations where time is of the 
9 
essence, and the Commission cannot suspend its action and wait for the opinion of the regulatory 
10 
agencies, the Commission may so decide or act accordingly, without prejudice to correcting or 
11 
modifying its action after obtaining the opinion of the regulatory agency. 
12 
I 
13 
SEC. 16. Power to Investigate and to Enforce Ordel'S and Resolutions. -The Commission 
14 
shall conduct preliminary inquiries by administering oaths, issuing subpoena duces tecum and 
15 
summoning witnesses, and commissioning consultants or experts. It shall determine if any 
16 
provision of this Act has been violated, enforce its orders and carry out its resolutions by making 
17 
use of any available means, provisional or otherwise, under existing laws and procedures 
18 
including the power to punish for contempt and to impose fines. 
19 
20' 
Sec. 17. Self-incl·imination. - Pursuant to the preceding section, a person subject of any 
21 
preliminary inquiry or investigation by the Commission shall produce the specified document or 
22 
infonnation when so required by written notice: Provided, That no person shall be excused from 
23 
disclosing any document or infonnation to the inquiring officer on the ground that the disclosure 
24 
of the information or document may be incriminating: Provided, further, That such document or 
25 
infonnation produced by the person subject of investigation shall not be admissible as evidence 
26 
against him in criminal proceedings: Provided, finally, That such document or information shall 
27 
be admissible in evidence in civil proceedings including those arising from or in connection to 
28 
the implementation of this Act. 
29 
30 
Sec. 18. Privileged Communication Exclusion. - Nothing in the precedmg section shall compel 
31 
the disclosure of privileged commnnication: Provided, That the person who refuses to disclose 
32 
the infonnation or produce the document or other material required by the inquiring officer in 
33 
relation to the preliminary inquiry being conducted shall nevertheless be obliged to give the 
34 
name and address of the finn to whom, or by whom, or on whose behalf, such privileged 
35 
communication was made. 
36 
37 
Sec. 19. Confidentiality of Information. - Any document or information submitted by firms, as 
38 
determined and marked confidential by the Commission, relevant to any investigation being 
39 
conducted pursuant to this Act shall not, in any manner, be directly or indirectly disclosed, 
40· 
published, transferred, copied, or disseminated. The identity of persons who provide infonnation 
41 
to the Commission and who need confidentiality to protect themselves against economic 
42 
retaliation, and any Commission deliberations in regard to current or still uncompleted matters 
43 
shall remain confidential. Any violation of this provision shall be imposed a fine of not less than 
44 
One hundred thousand pesos (PhpIOO,OOO.OO) but not more than Five hundred thousand pesos 
4S 
(Php500,OOO.OO). 
46 
16 


1 
Sec. 20. Immunity f"om Suit. " Any person or finn which cooperates or furnishes any 
2 
information, document or data to the Commission before or during the conduct of the 
3 
preliminary inquiry that constitutes material evidence as detennined by the under this Act sball 
4 
be immune from any suit or charge including from affected parties and third parties: Provided, 
5 
that the person or firm is not the most guilty. Provided, further, That any person or firm which 
6 
cooperates or furnishes information, document or data to the Commission in connection to an 
7 
investigation being conducted shall not be subjected to any form of reprisal or discrimination: 
B 
Provided, furthermore, That such reprisal or available means, provisional or otherwise, under 
9 
existing laws and procedures including the power to punish for contempt and to impose fines. 
10 
11 
Sec. 17. Self-incl'imination. - Pursuant to the preceding section, a person subject of any 
12 
preliminary inquiry or investigation by the Commission shall produce the specified document or 
13 
information when so required by written notice: Provided, That no person shall be excused from 
14 
disclosing any document or information to the inquiring officer on the ground that the disclosure 
15 
of the infonnation or document may be incriminating: Provided, further, That such document or 
16 
information produced by the person subject of investigation shall not be admissible as evidence 
17 
against him in criminal proceedings: Provided, finally, That such document or infonnation shall 
lB 
be admissible iIi. evidence in civil proceedings including those arising from or in cortnection to 
19 
the implementation of this Act. 
20 
21 
Sec. 18. Privileged Communication Exclusion. " Nothing in the preceding section shall compel 
22 
the disclosure of privileged communication: Provided, That the person who refuses to disclose 
23 
the information or produce the document or other material required by the inquiring officer in 
24 
relation to the preliminary inquiry being conducted shall nevertheless be obliged to give the 
25 
name and address of the firm to whom, or by whom, or on whose behalf, such privileged 
26 
communication was made. 
27 
28 
Sec. 19. Confidentiality of Information. - Any document or information submitted by firms, as 
29 
determined and marked confidential by the Commission, relevant to any investigation being 
30 
conducted pursuant to this Act shall not, in any manner, be directly or indirectly disclosed, 
31 
published, transferred, copied, or disseminated. The identity of persons who provide information 
32 
to the Commission and who need confidentiality to protect themselves against economic 
33 
retaliation, and any Commission deliberations in regard to current or still uncompleted matters 
34 
shall remain confidential. Any violation of this provision shall be imposed a fine of not less than 
35 
One hundred thousand pesos (PhplOO,OOO.OO) but not more than Five hundred thousand pesos 
36 
(Php500,OqO.00). 
37 
38 
Sec. 20. ~munity from Suit. -Any person or finn which cooperates or furnishes any 
39 
information, document or data to the Commission before or during the conduct of the 
40 
preliminary inquiry that constitutes material evidence as determined by the under this Act shall 
41 
be immune from any suit or charge including from affected parties and third parties: Provided, 
42 
that the person or firm is not the most guilty. Provided, further, That any person or firm which 
43 
cooperates or furnishes information, document or data to the Commission in connection to an 
44 
investigation being conducted shall not be subjected to any form of reprisal or discrimination: 
4S 
Provided, furthermore, That such reprisal or discrimination shall be considered a violation of this 
46 
Act and subjected to the penalties provided for under Section 11. 
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Nothing in this section shall preclude the prosecution of persons and finns who furnished 
the Commission with malicious information, data and falsified documents which is damaging to 
the business and integrity of the persons and firms under inquiry. Such act shall likewise be 
considered as an unfair trade practice punishable under this Act. 
The Commission may refuse to admit information, document or data that IS merely 
corroborative or is not essential for the conduct of the preliminary inquiry. 
Any person or firm which cooperates or furnishes any information, document or data to 
the Commission before or during the conduct of the preliminary inquiry that constitutes material 
evidence as determined by the under this Act shall be immune from any suit or charge related to 
such disclosure. 
SEC. 21. Termination and Action ou Preliminary Inquiry. -The Commission, after 
considering the statements made, or documents or articles produced, in the course of an inqUiry 
conducted by it, shall terminate the preliminary inquiry by issuing a resolution ordering its 
closure if I no violation or infringement of this Act is found; or by issuing a nolo contendere 
resolutioni or issuing a resolution to, singly or cumulatively, (a) impose penalties in the range 
provided Under Section 11 hereof; (b) order the rectification of certain acts or omissions; or (c) 
order the restitution to the affected parties. 
When determined by the facts and circumstances, the Commission shall institute a civil 
action by class suit in the name of the Republic of the Philippines, as parens patriae, on behalf of 
persons residing in the Philippines, to secure treble damages for any injury snstained by such 
persons by reason of any violation of this Act, plus the cost of suit and reasonable attorney's fee. 
If the evidence so warrants, the Commission shall file criminal cases for violation of this 
Act or relevant laws before the Department ofJustice pursuant to Section 12 of this Act. 
Any decision or order of the Commission to lodge a criminal complaint with the 
Department of Justice shall not be the snbject of a motion for reconsideration and shall not be 
subject to appeal. After rendering such decision or order, the Commission shall file a criminal 
complaint with the Department of Justice, which shaH then conduct the requisite preliminary 
investigation in accordance with the Rules of Criminal procedure in the Rules of Court. 
37" 
SEC. 22. Nolo Contende.'e Resolution. - Any firm under inquiry under the provisions of this 
38 
Act may submit to a nolo contendere resolution at any time before the termination of the 
39 
preliminary inquiry by: a) the payment of an amount within the range of penalties provided for 
40 
under Section 11; b) by entering into an undertaking to effectively stop and rectify the acts 
41 
complained against, make restitution to the affected parties, whether or not the parties are 
42 
plaintiffs or witnesses; and, c) by submitting regular compliance reports as may be directed: 
43 
Provided, That, ten percent (10%) of the amounts paid under this section shaH equitably accrue 
44 
to the Commission: Provided, further, That a nolo contendere resolution shall not bar any inquiry 
45 
for the same or similar acts if continued or repeated. 
46 
18 


I 
1 
SEC. 23 .. Implementing Policy; NOIl-Adversarial Adminish'ativ~ Remedies. - As an 
2 
implementing and enforcement policy, the Commission shall, under such rules and regulations it 
3 
may prescribe, encourage voluntary compliance with this Act and other competition laws by 
4 
making available to the parties concerned the following and other analogous non-adversarial and 
5 
non-adjudicatory administrative remedies, before the institution of administrative, civil or 
6 
criminal action: 
7 
8 
9 
10 
11 
12 
13 
14 
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16 
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31 
32 
33 
34 
35. 
36 
37 
38 
39 
40 
41 
42 
43 
44 
45 
46 
(a) Request for Bindmg Ruling. - Any person who is in doubt as to whether his 
contemplated or existing act, course of conduct, agreement, decision or practice is in 
compliance with, is exempt from, or in violation of any of the provisions of this Act, 
other trade competition laws, or implementing rules and regulations thereof, may request 
the Commission, in writing, to render a binding ruling thereon; 
(b) Show Cause Order. - Upon preliminary findings motu proprio or on written complaint 
under oath by an interested party, that any person is conducting his business, in whole or 
in part, that any person is conducting his business, in whole or in part, in a manner that 
may not be in accord with the provisions ofthis Act or other trade competition laws, and 
it finds that the issuance of a show cause order would be in the interest of the public, the 
Commission shall issue and serve upon such person or persons a written description of its 
business conduct complained of, a statement of the facts, data, and information together 
with a summary of the evidence thereof, with an order requiring the said person or 
persons to show cause, within the period therein fixed, why no order shall issue requiring 
such person or persons to cease and desist from continuing with ties identified business 
conduct, or pay the administrative fine therein specified, or readjust its business conduct 
or practices; 
(c) Proposal for Consent Judgment - At any time prior to the issuance of a binding ruling, 
the promulgation of a cease and desist judgment under a show cause order or the 
promulgation of a decision of judgment in any administrative, civil, or criminal case, the 
person or persons, whose business conduct is under inquiry in the particular proceedings 
may, without in any manner admitting a violation of this Act or any other trade 
competition laws, submit to the Commission a written proposal for the entry of a consent 
judgment, specifYing therein the terms and conditions of the proposed consent judgment. 
(d) Consultations. - Prior to the fitting of a request for a binding ruling or the submission 
of a proposal for consent judgment, the person or persons concerned may communicate, 
in writing, with the Commission on matters that should be included or excluded in such 
request or proposal, which the Commission may consider necessary for the effective 
enforcement of this Act or other trade competition laws. 
(e) Binding Ruling, Cease and Desist Order, and Consent Judgment -Based upon the 
facts, data, and information disclosed or supplied by the. persons concerned, or 
eslablished by substantial evidence during the hearing, the Commission sball issue a 
binding ruling, a cease and desist order or an approval of the proposal for a consent 
judgment, as the case may be, with or without conditions, to the effect that the particular 
act, course of conduct, agreement, decision or practice is in accord with this Act or other 
19 


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3 
4 
5 
6 
7 
8 
9 
10 
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33 
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46 
trade competition laws, or IS exempt therefrom, or is constitutive of a violation thereof. If 
the Commission finds that there is substantial evidence tending to show that the act, 
course of conduct, agreement, decision or practice of the person or persons concemed is 
prohibited, it shall include in its decision an order requiring the person or persons 
concemed: 
(l) Cease and Desist Order. - To cease and desist from continuing with the 
identified act, course or conduct, agreement, decision, or practice found to 
be violative of the provisions of this Act; 
(2) Administrative Penalty or Fine. - To pay the fine therein fixed; and 
(3) Readjustment of Business Methods. - To readjust, within a reasonable 
period therein fixed, its method of doing business, including a corporate 
reorganization or divestment in the manner and under the terms and 
conditions prescribed by the Commission, as it may deem proper for the 
protection of the public interest. 
(1) Suspension of Administrative, Civil or Criminal Proceedings. - No pending 
administrative, civil or criminal proceedings or those filed thereafter, against any person, 
corporation or any other juridical entity or its officers and employees, shall be suspended, 
except upon order of the Commission on proper motion, on the ground of the filing of a 
request fur binding ruling, the issuance of a show cause order or the filing of a proposal 
for a consent judgment based, in whole or in part, on the same set of facts and issues as 
th~t of the proceedings sought to be suspended; 
(g) Monitoring of Compliance. - The Commission shall monitor the compliance by the 
pe}son or persons concerned, their officers, and employees, with the final and executory 
binding ruling, cease and desist order, or approval of a consent judgment. Upon motion 
of an interested party, the Commission shall issue a certification to the effect that the 
person or persons concerned have, or have not, as the case may be, complied with a final 
and executory ruling, order, or approval; 
(h) Inadmissibility in Evidence. - The request for a binding ruling, the show cause order, 
or the proposal for consent judgment; the facts, data, and information therein contained or 
subsequently supplied by the person or persons concerned; admissions, oral or written, 
made by them against their interest; all other documents filed by them including their 
evidence presented in the proceedings before the Commission; and the judgment 
rendered thereon, shall not be admissible as evidence in any administrative, civil or 
criminal proceedings against such person or persons, their officers, employees, and 
agents nor constitute a basis for the introduction of the binding ruling, the cease and 
desist order, or the consent judgment as prima facie evidence against such persons in any 
such action of proceeding; 
(i) Modification or Reversal of Ruling, Order or Approval. - The Conunission may motu 
proprio or upon petition of an interested party, after notice and hearing, reopen and alter, 
modifY, or set aside, in whole or in part, a binding ruling, a cease and desist order, or an 
approved consent judgment: 
20 


1 
2 
(1) Whenever conditions of material fact or law have so changed as to 
3 
require such action; 
4 
(2) When the concerned person or persons fail or refuse, without 
5 
justifiable cause therefore, to comply with any condition attached to such 
6 
ruling, order, or approval, including an order to readjust their method of 
7 
doing business; or 
8 
(3) When the ruling, order, or approval was based on deliberately falsified 
9 
material fact, data, or information supplied by an interested party benefited 
10. 
by such ruling, order, or approval. 
11 
12 
The modification or reversal of a binding ruling, a cease and desist order, or an approveq 
13 
consent judgment shall have no retroactive effect and shall not affect or impair any right legally 
14 
acquired prior to- the modification or reversal thereof, except, that the party who is guilty of 
15 
unjustified fuilure or refusal to comply as specified in paragraph (2) hereof, or have deliberately 
16 
supplied such falsified material fact, data or information as specified in paragraph (3) above, is 
17 
barred from claiming any vested right therein. 
18 
19 
SEC. 24. Contempt. - The Commission, or any of its Divisions, may summarily punish for 
20 
contempt, or by a fine not exceeding thirty (30) days, or both, MY person guilty of such 
21 
misconduct in the presence of the Commission or any of its Divisions in its vicinity as to 
22 
seriously interrupt any hearing, session or any proceedings before it, including cases in which a 
23 
person willfully fails or refuses, without just caUSe, to comply with a summons, subpoena or 
24 
subpoena duces tecum legally issued by the Commission or any of its Division, being present at 
25 
a hearing, proceeding, session or investigation, refused to be sworn as a witness or to answer 
26 
questions or to furnish information when lawfully required to do so. 
27 
28 
SEC. 25. Decisions of the Commission. - Decisions of the Commission en banc shall be 
29 
appealable to the Court of Appeals as bereinafter provided. The appeal shall not stay the order, 
30. 
ruling or decision sougbt to be reviewed, unless the Court of Appeals shall direct otherwise upon 
31 
such terms and conditions it may deem just. 
32 
33 
SEC. 26. Al)peal to the COUl·t of Appeals. - Any party who has actively participated in the 
34 
proceedings before the Commission and is adversely affected by a binding ruling, order, or 
35 
resolution, decision, judgment, rule or regulation promulgation after notice and hearing by the 
36 
Commission sitting en bane, may appeal, by means of a notice of appeal and a verified petition 
37 
for review served upon the Commission and other partie;; who actively participated in the 
38 
proceedings, to the Court of Appeals within thirty (30) days from receipt thereof, on the ground 
39 
that the appealed action of the Commission: 
40 
41 
42 
43 
44 
45 
46 
(a) is contrary to constitutional rights, power, privilege, or immunity; 
(b) is in excess of statutory jurisdiction, authority, or limitations, or is contrary to law; 
(c) is without observance of the procedure required by law; 
(d) is not supported by snbstantial evidence. 
( e) contains errors on findings offact; or 
(f) contains errors on conclusions oflaw. 
I 
21 


, , 
{ 
1 
2 
The Commission shall be included as a party respondent to the case and shall be 
3 
represented by its own legal staff. The Commission shall be included as a party respondent to the 
4 
case and shall be represented by its own legal staff. 
5 
6 
SEC. 27. Appeal to the Supl'eme COUl·t. - A decision of the Court of Appeals may be appealed 
7 
to the Supreme Court in the manner and on the grounds prescribed by the Rules of Court. 
8 
9' 
SEC. 28. Reception of Additional Evidence. - Any party in the appellate proceedings may 
10 
apply for leave to the Court of Appeals or the Supreme Court, to adduce additional evidence 
11 
before the Commission. The Court may, under such terms and conditions as it may prescribe, 
12 
order the Commission to receive such additional evidence upon showing that it is material and 
13 
there are reasonable grounds for the failure to present said evidence in the proceedings before the 
14 
Commission. The Commission, sitting en bane, may modify its findings as to the facts, or make 
15 
new findings, by reason of the additional evidence taken, and it shall file with the appellate court 
16 
such modified or new findings and its recommendations for the affirmance, modification, or 
17 
setting aside of the appealed binding ruling, order, resolution, decision, judgment, rule· or 
18 
regulation. 
19 
20 
21 
22 
23 
24 
2S 
26 
27 
28 
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30 
31 
32 
33 
34 
3S 
36 
SEC. 29. Writ of Execution. - Upon the finality of its binding ruling, order, resolution, decision, 
judgment, or rule or regulation, (collectively, "Decision"), the Commission may issue a writ of 
execution to enforce its decision and the payment of the administrative fines provided in the 
preceding sections. 
SEC. 30. Violation hy Corpomtion, Partnership, Association, and Other Entity. - Whenever 
II corporation, partnership, association, firm or other entity, whether domestic or foreign, shall 
commit any of the acts declared to be unlawful under this Act, the Chairman of the Board of 
Directors, the President, the General Manager of the corporation, the' general partners of a 
partnership, and the officers and employees directly responsible, shall be jointly and severally 
liable with the firm for the fine imposed therein. 
SJoUld the offense be committed by a foreign corporation lice~sed to do business in the 
Philippines, the person or persons directly responsible in the Philippines for the management and 
operation thereof, shall be liable. In addition, its license to do business in the Philippines shall be 
cancelled. 
37 
It shall not be a defense for the Chairman of the Board of Directors, the President or the 
38 
General Manager of the corporation or the general partners of a partnership, or the persons 
39 
responsible for the management and operation of a foreign corporation licensed to do business in 
40 
the Philippines, that he was unaware of the violation, unless, he shall have established to the 
41 
satisfaction of the court that even with the exercise of due diligence and proper supervision, he 
42 
could not have avoided or prevented the violation. 
43 
44 
Any agreement between an officer, partner or any other officer and a corporation or 
45 
partnership whereby the latter directly or indirectly agrees to assume, satisfy or indemnify, in 
22 


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t 
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whole or in part, the fme of civil obligation imposed under this Act of such corporate officer, 
2 
partner, manager or other officer found guilty of violating this Act, shall be void. 
3 
4 
SEC. 3l. Alien ViolatOl1i. - If the person violating any provision of this Act is a foreigner, he 
5 
shall, in addition to the other penalties imposed herein, be deported after service of sentence 
6 
without need of any further proceedings. 
7' 
8 
SEC. 32. Essential Commodities. - If the violation involves the trade or movement of prime 
9 
commodities such as rice, corn, sugar, chicken, pork, beef, fish, vegetables, and other articles or 
10 
commodities of prime or basic necessity as declared by the appropriate government agency, 
11 
through publication, the fine imposed by the Commission or the courts, as the case may be, shall 
12 
automatically be tripled and the offender shall pay such threefold fme. 
13 
14 
SEC. 33. ).rivate Action. - Regardless of the status or pendency of a~y proceedings, any firm 
15 
that suffers injury by reason of any violation of this Act may institute a separate and independent 
16 
civil action, irrespective of the amount involved in the controversy against the defendant or 
17 
defendants and shall recover treble damages sustained, the costs of suit and reasonable attorney's 
18 
fees: Provided however, That no filing fees shall be collected: Provided, further, That filing fees 
19 
shall constitute a first lien in the award of damages. 
20 
21 
SEC. 34. Effect of Final Judgment - Any final judgment in a civil or criminal action brought 
22 
by the Commission on behalf of the people of the Philippines under this Act to the effect that a 
23 
defendant has violated any or all of the provisions of this Act shall be res judicata as to any claim 
24 
by any person on whose behalf such aytion was brought: Provided, That such person notifies the 
25 
court having jurisdiction of the case within the period given by the court: Provided further, That 
26 
such period shall not be less than ninety (90) days. 
28 
It shall be prima facie evidence against such defendant in any civil action brought by any 
29 
other party against such defendant under this Act as to all matters respecting which said 
30 
judgment would be an estoppel as between the parties concerned. 
31 
32 
SEC. 35. Distribution of Damages Recove,·ed. - The damages recovered in a civil action under 
33 
Section 20 of this Act shaH be distributed in the following manner: (1) as determined and to be 
34 
authorized by the Court having jurisdiction of the case; (2) ten percent (10%) of the total amount 
3S 
of damages shaH accrue to the Commission and/or regulatory agency to be used exclusively in 
36 
the enforcement of this Act; and, (3) the remainder of which total amount of damages shall be 
37 
deemed a civil penalty by the COUlt and shall be deposited to the National Treasury as patt of the 
38 
general fund of the government: Provided, That any distribution procedure adopted by the Court 
39 
shall give preference to individual consumers and afford each person having an interest a 
40 
reasonable opportunity to secure his appropriat\l portion of the net damages obtained 
41 
42 
SEC. 36. Measurement of Damages. - Damages may be proved and assessed in the aggregate 
43 
by statistical or sampling methods, by the computation of illegal overcharges, or by such other 
44 
reasonable system of estimating aggregate damages as the court in its discretion may permit 
45 
without the necessity of separately proving the individual claim, of, or amount of damage to, 
46 
persons on whose behalf the suit was brought. 
23 


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1 
2 
CHAPTER VI 
3 
OTHER PROVISIONS 
4 
5 
SEC. 37. Statute of Limitations. - Any civil or criminal action to enforce any cause of actIOn 
6 
arising from a violation of any provision of this Act shall be forever barred unless commenced 
7 
within five (5) years after the cause of action accrues. The running of the statute of limitation 
8 
shall be suspended during the pendency of any proceeding. 
9 
10 
The cause of action begins to run when the plaintiff suffers injury to its business or 
11 
property: Provided, That when the damage suffered by the plaintiff is too speculative to prove, 
12 
the cause of action does not accrue until the damage becomes probable: Provided however, That 
13 
if the plaintiffs injury is the result the continuing violations of this Act, each independent anti-
14 
competitive act may restart the limitation period or when a plaintiff reasonably fails to uncover a 
15 
cause or action that was fraudulently concealed by a defendant. 
16 
17 
SEC. 38. Prohibition ou the Issuance of Temporary Restraining Ol'del's, Preliminary 
18 
Injunctions and PI'eliminary Mandatol'Y Injunctions. -Except for the Supreme Court, no 
19 
other court shall issue any temporary restraining order, preliminary injunction or preliminary 
20 
mandatory injunction against the Commission in the exercise of its duties or functions: Provided 
21 
That, this prohibition shall apply in all cases, disputes or controversies instituted by a private 
22 
party, including, but not limited to, cases filed by regulated firtns or those claiming to have rights 
23 
through such firms: Provided however, That, this prohibition shall not apply when the matter is 
24 
of extreme urgency involving a constitutional issue, such that the non-issuance of a temporary 
25 
restraining order will result in grave injustice and irreparable injury to the public: Provided 
26 
further, That, the applicant shall file a bond, in an amount to be fixed by the Court, but in no case 
27 
shall it be less than half of the imposable fines provided for under Section II of this Act: 
28 
Provided finally, That in the event that the court finally decides that the applicant was not 
29 
entitled to the relief applied for, the bond shall accrue in favor of the Commission. 
30 
31 
32 
33 
34 
35 
36 
37 
38 
39 
40 
41 
42 
43 
44 
45 
46' 
Any temporary restraining order, preliminary injunction ot preliminary mandatory 
injunction issued in violation of this section is void and of no force and effect. Any judge who 
violates this section shall be penalized by suspension of at least one (1) year without pay in 
addition to other criminal, civil or administrative penalties. 
I 
The Supreme Court may designate regional trial courts to act a~ commissioners with the 
sole functjon of receiving facts of the case involving the acts of the Commission. The designated 
Regional Trial Court shall, within thirty (30) days from the date of receipt of the referral, forward 
its findings offacts to the Supreme Court for appropriate action. 
SEC. 39. Intellectual Property Rights. - The implementation of the provisions of this Act shall 
be without prejudice to the rights, liabilities and remedies under Republic Act No. 8293, 
otherwise known as the Intellectual Property Code of the Philippines: Provided, That, the 
exercise of intellectual property rights shall not in any way be used to justifY violations of this 
Act. 
24 


1 
SEC. 40. Trade Associations. - Nothlllg contained in this Act shall be construed to prohibit the 
2 
existence and operation of trade associations organized to promote quality standards and safety 
3 
issues: Provided, That, these associations shall not in any way be used to justifY any violation of 
4' 
this Act. 
5 
6 
SEC. 41. Implementing Rnles and Regulations. - The Commission shall prepare the necessary 
7 
rules and regulations within one hundred twenty (120) days from the effectivity of this Act: 
8 
Provided, That, where the same would apply to an industry or a sub-sector of industry that is 
9 
subject to the jurisdiction of a regulatory agency, the Commission shall, in preparing the 
10 . guidelines, consult with the concerned regulatory agency and stakeholders: further, That the 
11 
Commission may revise such guidelines as it deems necessary: Provided, however, That such 
12 
revised guidelines shall only take effect following its publication in two newspapers of general 
13 
Circulation. 
14 
15 
SEC. 42. Congressional Oversight Committee. - To oversee the implementation of this Act, 
16 
there shall be created a Congressional Oversight Committee on Fair Competition (COCFC) to be 
17 
composed of the Chairpersons of the Senate Committees on Trade and C01llmerce, Economic 
18 
Affairs, anll Finance; the Chairpersons of the House of Representatives Committees on Trade 
19 
and Industry, Economic Affairs and Appropriations; and two members each from the Senate and 
2e) 
the House bfRepresentatives who shall be designated by the Senate President and the Speaker of 
21 
the House of Representatives: Provided, That one of the two Senators and one of the two House 
22 
Members shall be nominated by the respective Minority Leaders of the Senate and the House of 
23 
Representatives. The Congressional Oversight Committee shall be jointly chaired by the 
24' 
Chairpersons of the Senate Committee on Trade and Commerce and the House of 
25 
Representatives Committee on Trade and Industry. The Vice-Chair of the Congressional 
26 
Oversight Committee shall be jointly held by the Chairpersons of the Senate Committee on 
27 
Economic Mfairs and the House of Representatives Committee Economic Affairs. 
28 
29 
The Secretariat of the Congressional Oversight Committee on Fair Competition shall be 
30 
drawn from the existing personnel of the Senate and House of Representatives committees 
31 
comprising the Congressional Oversight Committee. 
32 
33 
SEC. 43. Appl·opriations. - The amount necessary to implement the provisions of this Act shall 
34 
be included in the annual General Appropriations Act. However, for the initial budgetary 
35 
requirements of the Commission, the amount of One Hundred Million Pesos (PIOO,OOO,OOO.OO) 
36 
is hereby appropriated. 
37 
38 
Provided, that all moneys recovered or charges or composition sums collected under this 
39 
Act, other than financial penalties, shall be paid into and fonn part of the moneys of the 
40 
Commission. 
41 
42 
SEC. 44. Sepal'ability Clause. - If any clause, sentence, section or part of this Act shall be 
43 
adjudged by a court of competent jurisdiction to be invalid, such judgment shall not affect, 
44· 
impair or invalidate the remainder of this Act, but shall be confined in its operation to the clause, 
45 
sentence, paragraph, section, or part thereof directly involved in the controversy. 
46 
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1 
SEC. 45. SuppletOl-y Application. - For purposes of this Act, the Revised Penal Code, as 
2. 
amended, *nd other applicable laws shall be applied in a suppletory character. 
3 
4 
SEC. 46. Repealing Clause. - The following laws, insofar as they are inconsistent with any of 
5 
the provisions of this Act are hereby repealed, amended or otherwise modified accordingly: 
6 
7 
(a) Sec. 5 (3) ofRepuhlic Act No. 7581 or The Price Act; 
8 
(b) Sec. 5 (f) of Republic Act No. 792.5 or The Public Telecommunications Policy Act; 
9 
(c) Sec. 11 (a) and (b) of Republic Act No. 8479 or The Downstream Oil illdustry 
10 
Deregulation Act; 
11 
(d) Sec. 45 of Republic Act No. 9136 or The Electric Power illdustry Reform Act; 
12 
(e) Sec. 13 of Republic Act No. 92.95 Of The Domestic Shipping Development Act; 
13 
(f) Sec. 24 and 2.5 of Republic Act No. 9502 or The Universally-Accessible Cheaper and 
14 
Quality Medicines Act. 
15 
16 
Provided, That in case of conflict between this Act and such provisions of existing 
17 
competition laws and regulations, the provisions of this Act shall prevail. 
18 
19 
SEC. 47. Effectivity Clause. - This Act shall take effect fifteen (15) days following its 
20 
publication in the Official Gazette or in at least two (2) national newspapers of general 
21 
circulation. Provided however, ill order to allow affected parties time to renegotiate agreements 
22. 
or restructure their business to comply with the new competition law, the penal provisions ofthis 
23 
Act shall be imposed one (1) year after its effectivity. 
24 
25 
Approved, 
26 
26