Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City, Metro Manila

FIFTEENTH CONGRESS
First Regular Session

House Bill No.__ 1733

INTRODUCED BY HON. MARCELINO “MARCY” R. TEODORO

EXPLANATORY NOTE
The Constitution, Article XII, Section 1, provides that:

“Section 19. The State shall regulate or prohibit monopolies when the public
interest so requires. No combinations in restraint of trade or unfair competition shall be
allowed.”

This constitutional provision not only recognizes the danger that
monopolies pose on the public interest, but also contemplates that monopolies
emerging, through restraint of trade or unfair competition, must be struck down in
the incipiency.

This bill is a reaction to observation of industries being cartelized when
few suppliers of a vital product conspire to fix prices to the detriment of the public.
In very sensitive public utilities, small operators, who collectively may be able to
provide better and geographically farther-reaching service, are unable to do so
because of undue retraints imposed by the giants of the sector. In protecting
their turf, the giants and the virtual monopolies place public interest below the
objective of protecting market share and profitability.

The bill provides for treble-damage action. The fear of treble-damage
actions is one of the potent influences in securing compliance with antitrust.
Private suits are one of the important supplementary enforcement device.
Beyond the scope of the bill, it must also be recognized that there is an urgent
need to strengthen the administrative machinery to be tasked with implementing
this Anti-Trust Law: the Department of Trade and Industry, through possibly a
Trade Commission to monitor the business sector; and the Department of Justice,
for the prosecution of antitrust violators.

In view of the foregong, approval of this bill is earnestly sought.

MARCELINO “MARCY” R. TEODORO.

Representative, 1st District
City of Marikina


Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City, Metro Manila

FIFTEENTH CONGRESS
First Regular Session

House Bill No. 1 733

INTRODUCED BY HON. MARCELINO “MARCY” R. TEODORO

AN ACT
AMENDING ACT NO.3815, ALSO KNOWN AS THE REVISED PENAL CODE,
AS AMENDED, ARTICLE 186 ON MONOPOLIES AND COMBINATIONS IN
RESTRAINT OF TRADE

Be it enacted by the Senate and the House of Representatives of the
Philippines in Congress assembled:

SECTION 1. Republic Act No.3815, also known as the “Revised Penal
Code’, Article 186 on Monopolies and Combinations in Restraint of Trade is
hereby amended to read as follows:

Article 186. Monopolies and Combinations in Restraint of Trade. - The
penalty of PRISION MAYOR or a fine not exceeding ONE MILLION pesos
(PhP1,000,000,00) if a corporation, or, if any person, FIVE HUNDRED
THOUSAND pesos (PhP500,000.00), or both shall be imposed upon:

(1) Any person who shall enter into any contract or agreement or shall take
part in any conspiracy or combination in the form of a trust or otherwise, in
restraint of trade or commerce or to prevent by artificial means free
competition in the market;

(2) Any person who shall monopolize any merchandise or object of trade or
commerce, or shall combine with any other or persons to monopolize and
merchandise or object in order to alter the price thereof by spreading,
false rumors or making use of any other article to restrain free competition
in the market;

‘Any person who, being a manufacturer, producer, or processor of any
merchandise or object of commerce or object of commerce or an importer
of any merchandise or object of commerce from any foreign country,
either as principal or agent, wholesaler or retailer, shall combine, conspire
‘or agree in any manner with any merchandise or object of commerce from
any foreign country, either as principal or agent, wholesaler or retailer,


shall combine, conspire or agree in any manner with any person likewise
engaged in the manufacture, production, processing, assembling or
importation of such merchandise or object of commerce or with any other
persons not so similarly engaged for the purpose of making transactions
prejudicial to lawful commerce, or of increasing the market price in any
part of the Philippines, of any such merchandise or object of commerce
manufactured, produced, processed, assembled in or imported into the
Philippines, or of any article in the manufacture of which such
manufactures, produced, or imported merchandise or object of commerce
is used.

SECTION 2. Repealing Clause. - Any law, presidential decree or
issuance, executive order, letter of instruction, administrative order, rule or
regulation contrary to or inconsistent with the provisions of this Act is hereby
repealed, modified or amended accordingly.

SECTION 3. Effectivity Clause. - This Act shall take effect fifteen (15) days
after its publication in at least two(2) newspapers of general circulation.

Approved,