FIFTEENTH CONGRESS )
REPUBLIC OF THE PHILIPPINES )
FIRST REGULAR SESSION )

HOUSE OF REPRESENTATIVES

Introduced by Representative Rufus B. Rodriguez and
Representative Maximo B. Rodriguez, Jr.

House Bill No. 1980

EXPLANATORY NOTE

This bill seeks to penalize monopolies and unfair competition and
establish the Fair Trade Commission, defining its powers and functions.

The 1987 Constitution expressly provides that the State shall regulate
or prohibit monopolies when the public interest so requires. It also stipulates
that no combinations in restraint of trade or unfair competition shall be
allowed, However, despite the constitutional guarantees and the existence of
laws that affect competition, such laws are inadequate. The economy
continues to be dominated by groups of businesses with substantial market
power and political influence. Also, competition in the domestic market
remains restricted in key sectors.

The lack of genuine competition in certain industries impairs public
welfare and undermines the country’s credibility to provide a business climate
conductive to investment.

The proposed bill aims to encourage fair and free economic
competition by prohibiting the abuse of market-dominant positions and the
excessive concentration of economic power by regulating improper concerted
acts and unfair business practices, thereby stimulating creative business
activities, protecting consumers and promoting the balanced development of
the national economy. Among the key features of the bill are the creation of a
Fair Trade Commission that shall investigate, gather evidence and initiate
Prosecution of those engaged in unfair trade practices, the description of
monopoly and cartels ad the imposition of defined sanctions and penalties for
violation of the fair competition.


With this bill, it is believed that unfair competitions, monopolies and
cartels shall be properly regulated if not totally eradicated which will ultimately
protect the consumers from abuses of market powers.

In view of the foregoing, approval of this bill is highly and earnestly
recommended

RUFU$ B. RODI EZ

"i

MAXIMO B. RODRIGUEZ, JR.


FIFTEENTH CONGRESS )
REPUBLIC OF THE PHILIPPINES )
FIRST REGULAR SESSION )

HOUSE OF REPRESENTATIVES

Introduced by Representative Rufus B. Rodriguez and
Representative Maximo B. Rodriguez, Jr.

House Bill No., 1980

AN ACT
PENALIZING UNFAIR TRADE AND ANTI-COMPETITIVE PRACTICES IN
RESTRAINT OF TRADE, UNFAIR COMPETITION, ABUSE OF DOMINANT
POWER, STRENGTHENING THE POWERS OF REGULATORY
AUTHORITIES, ESTABLISHING THE FAIR TRADE COMMISSION AND
APPROPRIATING FUNDS THEREFOR, AND FOR OTHER PURPOSES

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

CHAPTER 1
TITLE AND DECLARATION OF POLICY

SECTION 1. Title. - This Act shall be known and cited as the
“Competition Act of 2010.”

Sec. 2. Declaration of Policy. — Pursuant to the constitutional
mandate that the State shall regulate or prohibit monopolies when the public
interest so requires and that no combinations in restraint of trade or unfair
competition shall be allowed, the State shall:

(a) promote and enhance economic efficiency and free and full
competition in trade, industry and all commercial economic
activities;

(b) prevent the concentration of economic power in a few persons who
threaten to control the production, trade, or industry in order to
unduly stifle competition, distort, manipulate or constrict the
discipline of free markets, increase market prices in the Philippines;
and

(c) penalize all forms of unfair trade, anti-competitive conduct and
combinations in restraint of trade, with the objective of protecting
consumer welfare and advancing domestic and international trade
and economic development.

CHAPTER 2


SCOPE AND APPLICATION, DEFINITION OF TERMS

Sec. 3. Scope 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. It shall likewise be
applicable to international trade having direct, substantial and reasonably
foreseeable effects in trade, industry or commerce in the Republic of the
Philippines including those that result from acts done outside the Republic of
the Philippines.

The Act shall apply to: (a) all firms as defined hereunder and all their
commercial agreements, actions or transactions involving goods, services or
intellectual property; and, (b) all natural persons who, acting in their capacity
as owner, manager or employee of a firm, shall authorize, engage or aid in
the commission of restrictive practices prohibited under this Act.

This Act shall apply neither to the combinations or activities of workers
or employees nor to agreements or arrangements with their employers when
such combinations, activities, agreements, or arrangements are designed
solely to facilitate collective bargaining in respect of conditions of
employment.

Sec. 4. Definition of Terms. — As used in this Act, the following terms
shall be defined as:

(a) “Agreements” shall refer to any type or form of arrangement,
understanding, undertaking or concerted action, whether formal or
informal, written or oral;

(b) “Cartel” shall mean a combination of firms, providing goods in
relevant markets, acting or joined together to obtain a shared
monopoly to control production, sale and price, or to obtain control
in any particular industry or commodity, or a group of firms that
agree to restrict trade to their mutual benefit, which may or may not
be of an international scale. It shall also refer to firms or section of
firms having common interest designed to promote the exchange of
knowledge resulting from scientific and technical research,
exchange of patent rights and standardization of products among
themselves with the intent of preventing, restricting or distorting
competition;

(©) “Commission” shall mean the Fair Trade Commission created under
this Act;

(d) “Competition” shall mean the process by which economic agents,
acting independently in a market, limit each other's ability to control
the prevailing conditions in the market;

(e) “Control” shall refer to at least twenty percent (20%) ownership,
directly or indirectly, of a firm or a group of firms by another firm:


(f) “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 firm: Provided, further, That two or more
firms that are controlled by a single firm shall be treated as one firm;

(9) “Goods” shall include all types of goods and property, tangible and
intangible, and services;

(h) “Market” shall refer to a place or venue for commercial activity,
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;

() “Monopoly” shall mean a privilege or undue advantage of one or
more firms, consisting in the exclusive right to carry on a particular
business or trade, and/or 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;

( “Monopoly Power" or “Dominant Position” shall refer to a situation
where a firm, either by itself or acting in collusion with other firms, is
in a position to control a relevant market for the sale of a particular
good or service by fixing its prices, excluding competitor firm, or
Controlling the market in a specific geographical area; and

(k) ‘Relevant Market” shall refer to the line of commerce in which
competition has been restrained. It shall also refer to the
geographic area involved, including all reasonably substitutable
goods, and all nearby competitors, to which consumers could tum if
the restraint or abuse results in the significant increase in prices.

CHAPTER 3
PROHIBITED ACTS

Sec. 5. Cartelization. — It shall be unlawful for firms providing goods in
relevant markets to join together to monopolize, or to control production in a
particular industry or commodity, the sale and price of such good, and to
agree to restrict trade for their mutual benefit, which may or may not be on an
international scale. This shall also include an association by agreement of
firms or sections of firms having common interests designed to promote the
interchange of knowledge resulting from scientific and technical researches,
exchange of patent rights and standardization of products among themselves
with the intent of preventing, restricting or distorting competition.


Restrictive agreements resulting from cartel-like behavior of firms, in
any form, are hereby per se deemed illegal. These shall include, but not
limited to, the following:

(a) Agreements to fix selling price of goods or other terms of sale;
(b) Agreements to limit supply or output;

(©) Agreements 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;

(d) Agreements to exclude or limit dealings with particular suppliers or
sellers from supplying or selling goods, or customers from acquiring
or buying goods;

(e)Agreements applying dissimilar conditions to equivalent
transactions with other parties, thereby placing them at a
competitive disadvantage: and

(f) Agreements making the transactions in particular goods dependent
upon other conditions which have no connection with the subject of
the transaction.

There shall be a prima facie case for the existence of a cartel if and
when the Department of Trade and industry (DTI) or concerned regulatory
agency finds that two or more persons or firms that are ostensibly competing
for the same relevant market and actually perform uniform or complementary
acts among themselves which tend to bring about artificial and unreasonable
increase, decrease or fixing in the price of any goods or when they
simultaneously and unreasonably increase, decrease or fix the prices of their
seemingly competing goods thereby lessening competition in the relevant
market among themselves.

Sec. 6. Monopolization. — \t shall be unlawful for any firm to willfully or
knowingly acquire and maintain its market power by excluding competitors
from any part of trade, industry or commerce as distinguished from natural
growth or development of a firm as a consequence of a superior product,
business acumen or historic accident Provided, That, a firm that has at least
fifty percent (50%) of the relevant market, or firms up to three (3) in number
has at least seventy percent (70%) of the relevant market, as found and
certified by the DTI or the concemed regulatory agency shall be deemed a
monopoly or in a dominant position.

Sec. 7. Abuse of Monopoly Power or Dominant Position. - It shall
be unlawful for one or more firms with monopoly power or in dominant
position within relevant markets to abuse their dominant position, by engaging
in unfair methods of competition, or in unfair or deceptive trade practices, or
entering into combinations in the form of trust or otherwise, or conspiracy, with
the purpose and effect to prevent, restrict, or distort competition. Abusive


agreements such as, but not limited to, any of the following, shall be deemed
to fall under the crime of abuse of monopoly power or market power by one in
dominant position:

(@) Predatory Behavior Towards Competitors — Any agreement,
including, but not limited to, selling goods at a very low price with
the intent of driving competitors out of the market, or creating
barriers to entry;

(b) Price Fixing — Any agreement among competitors to raise,
suppress, fix or otherwise maintain the price 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 formula 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.

(©) Bid Rigging — Any agreement to fix price at auctions or in any other
form 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 practices of bid manipulation.

In determining whether there is price fixing or bid rigging, the following
circumstances may be considered:

(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,

(2) a drastic change in prices of goods and services involving more
than one seller of similar goods of different brands, particulariy if
the changes in prices take place in equal amount and about the
same time:

()a seller refusing to sell based on an agreement with a
competitor;

(@) 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;

(6) 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.

(d) Limitation and Control of Markets — Any agreement to limit or
control production, markets, technical development, or investment


or render unlawful permissible franchising, licensing or exclusive
distributorship agreements.

()) 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, where the purpose and
effect of such sale or lease or such condition is to substantially
lessen competition or to create a monopoly or cartel.

() 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, such as, but not limited to:

(1) Defaulting Borrowers — refusal by one or more credit institutions
to extend loans to defaulting debtors;

(2) Defaulting Buyers — refusal by one or more manufacturers or
sellers to sell on credit to defaulting customers; and

(3) Violators of Intellectual Property Rights — refusal by
manufacturers or sellers to have any commercial dealings with
one or more firms who violate the intellectual property rights of
the owners of patents, copyrights, trademarks and other
intellectual property.

Sec. 8. Other Unfair Competition Practices. — The following acts
shall be unlawful acts of unfair competition and shall be punishable under this
Act:

(a) Distribution of false or misleading information which is capable of
harming the business interests of another firm;

(b) Distribution of false or misleading information to consumers,
including the distribution of information lacking a reasonable basis
related to price, character, method or place of production,
Properties, suitability for use, or of quality goods; and

(©) Unauthorized receipt, use, or dissemination of confidential scientific,
technical, production, business or trade information.

SEC. 9. Merger, Consolidation, or Asset Acquisition. — No firm
engaged in commerce or trade shall acquire, directly or indirectly, the whole
or any part of the stock or other share capital, or the whole or any part of the
assets, of one or more firms engaged in any line of commerce or trade where
the effect of such acquisition of such stocks, share capital, or assets, or of the
use of such stock by voting or granting of proxies or otherwise maybe to
‘substantially lessen competition, or tend to create a monopoly.

(a) Permissible Stock or Asset Acquisition or Ownership. — Nothing
contained herein, however, shall be construed to prohibit

(1) A firm from purchasing the stock or other share capital of
one or more corporations solely for investment and not


using the same by voting or otherwise to bring about, or in
attempting to bring about, the substantial lessening of
competition;

(2)A corporation from causing the formation of subsidiary
corporations, or form owning and holding all or part of the
stock of such subsidiary corporations, for the actual carrying
on of their immediate lawful business, or the natural and
legitimate branches or extensions thereof, and

(3) A firm from continuing to own and hold the stock or other
share capital or assets of another corporation which its
acquire prior to the approval of this Act.

(b) Notification Prior to Stock or Asset Acquisition. — No firm shall
acquire, directly or indirectly, the shares of stock or assets of any
other firm, if as a result of the acquisition, the acquiring firm would
own fifteen percent (15%) or more of the shares of stock or assets
of the acquired firm, unless, the acquiring and selling firm notify,
prior to the conclusion of the agreement for such acquisition and in
the prescribed form, the Commission of such proposed acquisition.
Only the acquiring ‘firm is required to make the notification in a
tender offer. The contemplated acquisition shall be deemed
approved, unless the Commission, within thirty (30) calendar days
from receipt of the notification, orders the acquiring firm to show
cause why the proposed acquisition shall not be declared as
prohibited under this Act or any other competition law. 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.

(©) 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 of an issuer at least fifty
percent (50%) of the voting securities of which are owned
by the acquiring firm prior to such acquisition;

(4) Transfers to, or from, govemment 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) Transactions which require the approval of a specialized
agency which regulates the particular industry;

(7) Acauisitions, 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,

(8) Acquisitions of voting securities pursuant to the preemptive
rights of the acquiring firm; or, if, as a result of such
acquisition, the voting securities acquired do not increase,
directly or indirectly, the acquiring firm's per centum share
of outstanding voting securities of the issuers; or

(9) Such other acquisitions, transfers, or transactions which the
Commission may declare as are not likely to violate the
provisions of this Act or any other proper and applicable
law.

(d) Mergers and Acquisitions in Regulated Industries. - Nothing
contained in this Section shall apply to mergers, consolidations, and
stock or asset acquisitions duly approved by the specialized
government agency that, by law, is duly empowered to regulate a
specific sector of the economy such as, but not limited to, the
Bangko Sentral ng Pilipinas in respect of banks and other financial
institutions, the Insurance Commission in respect of insurance
companies, the National Telecommunications Commission in
respect of telecommunications companies, the Land Transportation
Franchising and Regulatory Board in respect of public land
transportation and the Civil Aeronautics Board in respect of air
transportation. The exemption herein prescribed shall not apply to
the approval of a merger or consolidation by the Securities and
Exchange Commission in the exercise of its general regulatory
powers over corporations.

CHAPTER 4
FINES AND PENALTIES

Sec. 10. Penalties. — Without prejudice to the violation of other laws,
any firm that shall be found to have violated Sections 5, 6, 7, 8 and 9 of this
Act, or any combination thereof, shall, for each and every violation, be
punished by a fine of not less than Ten million pesos (Php10,000,000.00) and
not exceeding Fifty million pesos (Php50,000,000.00) if a natural person; by a
fine of not less than Two hundred fifty million pesos (Php250,000,000.00) but
not exceeding Seven hundred fifty million pesos (Php750,000,000.00) if a
firm, and by imprisonment not exceeding ten (10) years, or both, at the
discretion of the court In the alternative, a fine shall be imposed in the
amount double the gross proceeds gained by the violator or double the gross
loss suffered by the plaintiffs.

Sec. 11. Imposition of Fines by Regulatory Agency. —
Notwithstanding any provisions of law, regulatory agencies shall, in the
conduct of their functions or duties, have the power to impose fines in the


amount not less than One hundred thousand pesos (Php 100,000.00) and not
‘exceeding Five million pesos (Php5,000,000.00), if a natural person; and not
less than Five million pesos (Php5,000,000.00) and not exceeding Fifty million
pesos (Php50,000,000.00) if a firm for each violation of or non-compliance
with an order or notice of the regulatory agency. Ten percent (10%) of such
fines shall accrue to the budget of the regulatory agency for the exclusive use
in the enforcement of this Act.

CHAPTER 5
FAIR TRADE COMMISSION

SEC. 12. Fair Trade Commission. — To implement the national policy
and attain the objectives and purposes of this Act, an independent
Commission is hereby created, which shall be known as the Fair Trade
Commission, and which shall be organized within sixty (60) days after the
approval of this Act

For administrative purposes, the Commission shall be under the Office
of the President.

(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 forty (40) 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
finance, 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) Term of Office. - The Chairman and the Associate Commissioners
shall be appointed by the President of the Philippines. The term of
office of the Chairman and the Associate Commissioners 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.

() Statement of Assets and Liabilities. — The Chairman and the
Associate Commissioners shall, upon assumption of office and
within the month of January of every years thereafter, as well as
upon the expiration of their respective terms of office, or upon their
resignation or separation from office, file with the Office of the
President, the President of the Senate and the Speaker of the


House of Representatives a true, accurate, complete, detailed and
swom statement of assets and liabilities, including a statement of
amounts and sources of income, personal and family expenses,
and income taxes paid for the immediately preceding calendar year:
Provided, That the first statement may be filed within the month of
January next following if the Chairman or the Associate
Commissioner concemed assumes office at any time before the
end of the calendar year.

(d) 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 any subdivision, agency, or instrumentality thereof,
including govemment-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 nor former law, business, or professional partner or
associate of any of the Commissioners, the Chairman and the
Secretary of the Commission may appear as counsel or agent on
any matter pending before the Commission or transact business
directly or indirectly therein during his/her incumbency and within
‘one (1) year from his/her 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, while
the Associate Commissioners shall each hold the rank of and shall
have the privileges and compensation equivalent to that of a
Department Undersecretary.

(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 banc.

(9) 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
ofits 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 a member of the
Philippine Bar with at least ten (10) years experience in the active
practice of law in the Philippines or in the discharge of functions of
an office requiring as an indispensable requisite, admission to the
practice of law in the Philippines. The members of the technical
staff, except those performing purely clerical functions shall
possess at least a Bachelor Degree in the following lines of
specialization: economics, preferably in industrial organization; law;
finance; commerce; accounting; or management.

SEC. 13. Original and Exclusive Jurisdiction. — The Commission
shall have original and exclusive jurisdiction to enforce, implement and
administer the provisions of this Act, its implementing rules and regulations,
and all other competition laws, and in particular:

(a) Powers 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 Investigation — To conduct the required preliminary
investigation of all criminal cases involving violations of this Act
and other competition laws in accordance with the procedure
Prescribed by the Rules of Court and other laws and rules on the
conduct of preliminary investigations; and thereafter, if
appropriate, to sign, file, and prosecute the proper criminal
information before the Regional Trial Court that has territorial
jurisdiction thereof: Provided, That a civil case filed by the
Commission based in whole or part, upon the same set of facts
and issues as that of a pending criminal proceeding, whether in
the judicial or preliminary investigation stage, shall constitute a
prejudicial question and suspend such criminal proceeding:

(5) Administrative Fines and Penalties — To impose the appropriate
administrative fines or penalties herein authorized to be
imposed;

(6) Delegation of Power Which Require 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
banc 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 raffie
conducted in public; and

(7) Appeal to the Commission En Banc. — Final orders, resolutions,
judgments, or decisions of a Division may be appealed to the
Commission sitting en banc, 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 banc. 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 proceedings, order the
Presentation of additional material evidence as part of the
appellate proceedings.

(b) Powers of the Commission Without Hearing. - The Commission
shall have the power to do the following acts, without hearing:

() Motu Propio Investigation or Upon Complaint. - To
investigate, on its own initiative or upon the complaint of
any person, any and all violations of this Act and other
competition laws prior to the commencement of a
preliminary investigation, or the issuance of a show cause
order, or the institution of a civil or administrative action;

( Civil Action. — To attest and file on behalf of the State, all
civil complaints for damages to business or property of the
State, arising from a violation of this Act and other
competition laws;

(3) Administrative Action. — To attest and file all complaints
before the proper administrative bodies or agencies for
appropriate administrative relief from, or against, violations
of this Act or other trade competition laws;

(@ Request for Assistance. — To request any government
agency for assistance and information necessary in the
discharge of its responsibilities under this Act, and examine
if necessary, pertinent records and documents in the
possession of such government agency;

(S) Industry Studies and Company Profile. - To gather and
compile information and investigate from time to time, the
way a given industry is structured or organized whether as
monopoly, oligopoly, or competitive; the way the firms
within that industry act, behave, or conduct themselves in
such matters as setting prices, determining output, and the
resulting performance of the industry as a whole; the
organization, business, conduct, practices and
Management of any person, partnership, or corporation
engaged in trade, commerce, or industry and its relation to


individuals, partnerships, associations, corporations, firms
and other business enterprises;

(© Issuance of Subpoena. — To issue subpoena, subpoena
duces tecum and subpoena ad testificandum in all hearings,
inquiries, and proceedings being conducted by the
Commission or any of its Division in the exercise of its
functions, powers and duties under this Act, subject to the
following standards:

i. No subpoena shall be issued to require the production or
disclosure of trade secrets as defined in sub-paragraph
(7) hereof,

ii. A subpoena may be quashed only by means of a motion
duly set for hearing and on the grounds prescribed by
the Rules of Court:

iii. A person appearing before the Commission, or any of its
Divisions, in obedience to a subpoena shall be advised,
before he is required to testify or produce any
documentary or real evidence, of his right to be assisted
or represented by a counsel of his choice, or if he has
none, the Commission shall appoint a de officio counsel
for him; and of his rights to avail of the immunity from
prosecution privilege herein prescribed;

(7) Annual and Special Reports, etc. — To require, by general
or special orders, firms engaged in trade, commerce, or
industry to file with the Commission in such form as the
Commission may prescribe, annual or special reports, or
answers in writing to specific questions, fumishing 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
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,
Patter, 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 confide 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; and

(11) Internal Rules and Regulations. - To promulgate rules and
regulations for its internal operation.

Sec. 14. Jurisdiction of Regional Trial Courts. — The Regional Trial
Court of the province of city, where the firm or any of the firms whose
business acts or conduct constitutes the subject matter of a case, conducts its
principal place of business, shall have original and exclusive jurisdiction,
regardless of the penalties and fines herein imposed, of all criminal and civil
cases involving violations of this Act and other trade competition laws. If the
defendant, or anyone of them is charged in his capacity as an officer,
employee, or agent of a corporation or other juridical entity who knowingly
authorize the commission of the offense charged, the Regional Trial Court of
the province or city where such corporation or juridical entity conducts its
principal place of business, shall have jurisdiction.

CHAPTER 6
ENFORCEMENT

Sec. 15. Preliminary Inquiry. - The Commission, in coordination with
other regulatory and/or appropriate government agency, shall motu propio,
upon the filing of a verified complaint by an interested party or upon referral by
the concemed regulatory agency, initiate a preliminary inquiry for the
enforcement of this Act based on reasonable grounds.

Sec 16. Powers of Concemed Regulatory Agencies. —
Notwithstanding the provisions of the preceding section, the exercise of
regulatory powers by different government agencies over an industry or a
sub-sector of an industry shall be cumulative and shall not be construed in
any way as derogating from the power and authority of the concemed agency.
The government agencies shall cooperate and coordinate with one another in
the exercise of their powers in order to prevent overlap, to share confidential
information, or for other effective measures.

Sec. 17. Power to Investigate and to Enforce Orders and
Resolutions. — The Commission shall conduct preliminary inquiries by
administering oaths, issuing subpoena duces tecum and summoning
witnesses, and commissioning consultants or experts. It shall determine if
any provision of this Act has been violated, enforce its orders and carry out its
resolutions by making use of any available means, provisional or otherwise,
under existing laws and procedures including the power to punish for
contempt and to impose fines.


Sec. 18. Self-incrimination. Pursuant to the preceding section, a
person subject of any preliminary inquiry or investigation by the Commission
shall produce the specified document or information when so required by
written notice: Provided, That no person shall be excused from disclosing any
document or information to the inquiring officer on the ground that the
disclosure of the information or document may be incriminating: Provided,
further, That such document or information produced by the person subject of
investigation shall not be admissible as evidence against him in criminal
proceedings: Provided, finally, That such document or information shall be
admissible in evidence in civil proceedings including those arising from or in
connection to the implementation of this Act.

Sec. 19. Privileged Communication Exclusion. Nothing in the
preceding section shall compel the disclosure of privileged communication
Provided, That the person who refuses to disclose the information or produce
the document or other material required by the inquiring officer in relation to
the preliminary inquiry being conducted shall nevertheless be obliged to give
the name and address of the firm to whom, or by whom, or on whose behalf,
such privileged communication was made.

Sec. 20. Confidentiality of Information. Any document or information
submitted by firms, as determined and marked confidential by the
Commission, relevant to any investigation being conducted pursuant to this
Act shall not, in any manner, be directly or indirectly disclosed, published,
transferred, copied, or disseminated.

Any violation of this provision shall be imposed the penalty of
imprisonment ranging from three (3) to six (6) years and a fine of not less than
One hundred thousand pesos (Php100,000.00) but not more than Five
hundred thousand pesos (Php500,000.00).

Sec. 21. Immunity from Suit. 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
including from affected parties and third parties: Provided, further, That any
person or firm which cooperates or furnishes information, document or data to
the Commission in connection to an investigation being conducted shall not
be subjected to any form of reprisal or discrimination: Provided, furthermore,
That such reprisal or discrimination shall be considered a violation of this Act
and subjected to the penalties provided for under Section 10: Provided, finally,
That, notwithstanding the provisions of Section 37 hereof, the firm which
cooperates with the Commission in its investigation shall be entitled to a
reward equivalent to twenty percent (20%) of any monies paid by the firm
subject of the inquiry, or the monetary relief recovered from court action

Nothing in this section shall preclude prosecution for persons and firms
who reported to 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.

Sec. 22. Termination and Action on 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 no violation or
infringement of this Act is found; or by issuing a nolo contendere resolution; or
issuing a resolution to, singly or cumulatively, (a) impose penalties in the
range provided under Section 10 hereof, (b) order sanctions which may be
imposed by the regulatory and/or appropriate government agency; (c) order
the rectification of certain acts or omissions; or (d) 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 sustained 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 institute criminal
cases for violation of this Act or relevant laws: Provided, That, for criminal
prosecution of violations of this Act, no preliminary investigation shall be
fequired, neither shall a petition for review be made: Provided, further, That
any appeal shall be instituted to a division of the Court of Appeals exclusively
handling competition and consumer protection laws.

Sec. 23. Nolo Contendere Resolution. — Any firm under inquiry under
the provisions of this Act may submit to a nolo contendere resolution at any
time before the termination of the preliminary inquiry by: a) the payment of an
amount within the range of penalties provided for under Section 10; b) by
entering into an undertaking to effectively stop and rectify the acts complained
against, make restitution to the affected parties, whether or not the parties are
plaintiffs or witnesses; and, c) by submitting regular compliance reports as
may be directed: Provided, That, ten percent (10%) of the amounts paid under
this section shall equitably accrue to the Commission and/or regulatory
government agencies involved in the inquiry: Provided, further, That a nolo
contendere resolution shall not bar any inquiry for the same or similar acts if
continued or repeated.

SEC. 24. Implementing Policy; Non-Adversarial Administrative
Remedies. — As an implementing and enforcement policy, the Commission
shall, under such rules and regulations it may prescribe, encourage voluntary
compliance with this Act and other competition laws by making available to
the parties concemed the following and other analogous non-adversarial and
non-adjudicatory administrative remedies, before the institution of civil or
criminal action:

(a) Request for Binding 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 propio 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 of this 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 concemed 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.

(€) Binding Ruling, Cease and Desist Order, and Consent Judgment. —
Based upon the facts, data, and information disclosed or supplied
by the persons concemed, or established by substantial evidence
during the hearing, the Commission shall 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 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:

(1) 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.

(f) 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 for 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
that of the proceedings sought to be suspended.

(9) Monitoring of Compliance. - The Commission shall monitor the
compliance by the person or persons concemed, 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 concemed 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.


() Modification or Reversal of Ruling, Order or Approval. - The
Commission may motu propio 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:

(1) Whenever conditions of material fact or law have so
changed as to require such action;

(2) When the concemed person or persons fail or refuse,
without justifiable cause therefore, to comply with any
condition attached to such ruling, order, or approval,
including an order to readjust their method of doing
business; or

(3) When the ruling, order, or approval was based on
deliberately falsified material fact, data, or information
supplied by an interested party benefited by such ruling,
order, or approval.

The modification or reversal of a binding ruling, a cease and desist
order, or an approved consent judgment shall have no retroactive
effect and shall not affect or impair any right legally acquired prior to
the modification or reversal thereof, except, that the party who is guilty
of unjustified failure or refusal to comply as specified in paragraph (2)
hereof, or have deliberately supplied such falsified material fact, data or
information as specified in paragraph (3) above, is barred from claiming
any vested right therein.

SEC. 25. Contempt. - The Commission, or any of its Divisions, may
summarily punish for contempt, or by a fine not exceeding thirty (30) days, or
both, any person guilty of such misconduct in the presence of the Commission
or any of its Divisions in its vicinity as to seriously interrupt any hearing,
session or any proceedings before it, including cases in which a person
willfully fails or refuses, without just cause, to comply with a summons,
‘subpoena or subpoena duces tecum legally issued by the Commission or any
of its Division, being present at a hearing, proceeding, session or
investigation, refused to be sworn as a witness or to answer questions or to
furnish information when lawfully required to do so.

SEC. 26. Decisions of the Commission. - Decisions of the
Commission en banc shall be appealable to the Court of Appeals as
hereinafter provided. The appeal shall not stay the order, ruling or decision
sought to be reviewed, unless the Court of Appeals shall direct otherwise
upon such terms and conditions it may deem just.

SEC. 27. Appeal to the Court of Appeals. - Any party who has
actively participated in the proceedings before the Commission and is
adversely affected by a binding ruling, order, or resolution, decision,
judgment, rule or regulation promulgation after notice and hearing by the
Commission sitting en banc, may appeal, by means of a notice of appeal and
a verified petition for review served upon the Commission and other parties


who actively participated in the proceedings, to the Court of Appeals within
thirty (30) days from receipt thereof, on the ground that the appealed action of
the Commission:

(a) is arbitrary to constitutional rights, power, privilege, or immunity;
(b) is contrary to constitutional rights, power, privilege, or immunity;

{c) is in excess of statutory jurisdiction, authority, or limitations, or is
contrary to law;

(d) is without observance of the procedure required by law; and
(e) is not supported by substantial evidence.

The Commission shall be included as a party respondent to the case
and shall be represented by its own legal staff.

SEC. 28. Appeal to the Supreme Court. — A decision of the Court of
Appeals may be appealed to the Supreme Court in the manner and on the
grounds prescribed by the Rules of Court.

SEC. 29. Special Courts. — To ensure the effective adjudication of
controversies under this Act and other trade competition laws, the Supreme
Court shall designate such Regional Trial Courts that will have exclusive
jurisdiction over unfair competition cases. The uniform trial procedures to be
prescribed for such cases shall be strictly observed and postponements shall
be discouraged. Decisions in such cases shall be rendered within sixty (60)
days from the termination of the case.

SEC. 30. Reception of Additional Evidence. — Any party in the
appellate proceedings may apply for leave to the Court of Appeals or the
Supreme Court, to adduce additional evidence before the Commission. The
Court may, under such terms and conditions as it may prescribe, order the
Commission to receive such additional evidence upon showing that it is
material and there are reasonable grounds for the failure to present said
evidence in the proceedings before the Commission. The Commission, sitting
en banc, may modify its findings as to the facts, or make new findings, by
reason of the additional evidence taken, and it shall file with the appellate
court such modified or new findings and its recommendations for the
affirmance, modification, or setting aside of the appealed binding ruling, order,
resolution, decision, judgment, rule or regulation.

SEC. 31. Administrative Fines or Penalties. — Any person who fails
or neglects to comply with any term or condition of a binding ruling, a cease
and desist order or an order for readjustment issued by the Commission, shall
pay a fine of not less than Fifty Thousand Pesos (Php50,000.00) for each
violation. Each violation shall be deemed a separate offense: Provided, That
in the case of a violation through a continuing failure or neglect to comply,


each day of continuance of such failure or neglect shall be deemed a
separate offense.

The Commission may likewise impose upon persons or entities fines of
not less than Five Thousand Pesos (Php5,000.00) to not more than One
Hundred Thousand Pesos (Php100,000.00) where, intentionally or
negligently, they supply incorrect or misleading information in any document,
application or other paper filed with or submitted to the Commission or supply
incorrect or misleading information in an application or other paper filed with
or submitted to the Commission or supply incorrect or misleading information
in an application for a binding ruling, a proposal for a consent judgment,
proceedings relating to a show cause order, or application for modification of
the Commission's ruling, order or approval, as the case may be.

SEC. 32. 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. 33. Violation by Corporation, Partnership, Association, and
Other Entity. - Whenever a 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
therefore, shall be imposed the penalty of imprisonment provided in Section
21 hereof, with such juridical entity being jointly and severally liable with the
offended for the fine imposed therein.

Should the offense be committed by a foreign corporation licensed to
do business in the Philippines, the person or persons directly responsible in
the Philippines for the management and operation thereof, shalll be liable. In
addition, its license to do business in the Philippines shall be cancelled.

It shall not be a defense for the Chairman of the Board of Directors, the
President or the General Manager of the corporation or the general partners
of a partnership, or the persons responsible for the management and
operation of a foreign corporation licensed to do business in the Philippines,
that he was unaware of the violation, unless, he shall have established to the
satisfaction of the court that even with the exercise of due diligence and
proper supervision, he could not have avoided or prevented the violation.

Any agreement between an officer, partner or any other officer and a
corporation or partnership whereby the latter directly or indirectly agrees to
assume, satisfy or indemnify, in whole or in part, the fine of civil obligation
imposed under this Act of such corporate officer, partner, manager or other
officer found guilty of violating this Act, shall be void


SEC. 34. Alien Violators.— _{f the person violating any provision
of this Act is a foreigner, he shall, in addition to the other penalties imposed
herein, be deported after service of sentence without need of any further
proceedings.

SEC. 35. Essential Commodities. — |f the violation involves the trade
‘or movement of prime commodities such as rice, com, sugar, chicken, pork,
beef, fish, vegetables, and other articles or commodities of prime or basic
necessity as declared by the appropriate government agency, through
publication, the fine imposed by the Commission or the courts, as the case
may be, shall automatically be tripled and the offender shall pay such
threefold fine

Sec. 36. Private Action. — Regardless of the status or pendency of
any proceedings, any firm that suffers injury by reason of any violation of this
Act may institute a separate and independent civil action, irrespective of the
amount involved in the controversy against the defendant or defendants and
shall recover treble damages sustained, the costs of suit and reasonable
attorney's fees: Provided, however, That no filing fees shall be collected:
Provided, further, That filing fees shall constitute a first lien in the award of
damages.

Sec. 37. Effect of Final Judgment. — Any final judgment in a civil or
criminal action brought by the Commission on behalf of the people of the
Philippines under this Act to the effect that a defendant has violated any or all
of the provisions of this Act shall be res judicata as to any claim by any
person on whose behalf such action was brought: Provided, That such
person notifies the court having jurisdiction of the case within the period given
by the court: Provided, further, That such period shail not be less than ninety
(90) days.

It shall be prima facie evidence against such defendant in any civil
action brought by any other party against such defendant under this Act as to
all matters respecting which said judgment would be an estoppel as between
the parties concerned.

Sec. 38. Distribution of Damages Recovered. - The damages
recovered in a civil action under Section 23 of this Act shall be distributed in
the following manner: (1) as determined and to be authorized by the Court
having jurisdiction of the case; (2) ten percent (10%) of the total amount of
damages shall accrue to the Commission and/or regulatory agency to be used
exclusively in the enforcement of this Act; and, (3) the remainder of which
total amount of damages shall be deemed a civil penalty by the Court and
shall be deposited to the National Treasury as part of the general fund of the
government: Provided, That any distribution procedure adopted by the Court
shall give preference to individual consumers and afford each person having
an interest a reasonable opportunity to secure his appropriate portion of the
net damages obtained.


Sec. 39. Measurement of Damages. — Damages may be proved and
assessed in the aggregate by statistical or sampling methods, by the
computation of illegal overcharges, or by such other reasonable system of
estimating aggregate damages as the court in its discretion may permit
without the necessity of separately proving the individual claim, of, or amount
of damage to, persons on whose behalf the suit was brought.

CHAPTER 7
OTHER PROVISIONS

Sec. 40. Statute of Limitations. — Any civil or criminal action to
enforce any cause of action arising from a violation of any provision of this Act
shall be forever barred unless commenced within five (5) years after the
cause of action accrues. The running of the statute of limitation shall be
suspended during the pendency of any proceeding

The cause of action begins to run when the plaintiff suffers injury to its
business or property: Provided, That when the damage suffered by the
plaintiff is too speculative to prove, the cause of action does not accrue until
the damage becomes probable: Provided, however, That if the plaintiffs injury
is the result of the continuing violations of this Act, each independent anti-
competitive act may restart the limitation period or when a plaintiff reasonably
fails to uncover a cause or action that was fraudulently concealed by a
defendant.

SEC. 41. Prohibition on the Issuance of Temporary Restraining
Orders, Preliminary Injunctions and Preliminary Mandatory Injunctions.
~ Except for the Supreme Court, no other court shall issue any temporary
restraining order, preliminary injunction or preliminary mandatory injunction
against the regulatory agency in the exercise of its duties or functions:
Provided, That, this prohibition shall apply in all cases, disputes or
controversies instituted by a private party, including, but not limited to, cases
filed by regulated firms or those claiming to have rights through such firms:
Provided, however, That, this prohibition shall not apply when the matter is of
extreme urgency involving a constitutional issue, such that the non-issuance
of a temporary restraining order will result in grave injustice and irreparable
injury to the public: Provided, further, That, the applicant shall file a bond, in
an amount to be fixed by the Court, but in no case shall it be less than half of
the imposable fines provided for under Section 11 of this Act: Provided, finally,
That in the event that the court finally decides that the applicant was not
entitled to the relief applied for, the bond shall accrue in favour of the
regulatory agency.

Any temporary restraining order, preliminary injunction or 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.


The Supreme Court may designate regional trial courts to act as
commissioners with the sole function of receiving facts of the case involving
the acts of the regulatory agency. The designated Regional Trial Court shall,
within thirty (30) days from the date of receipt of the referral, forward its
findings of facts to the Supreme Court for appropriate action.

Sec. 42. 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

Sec. 43. Trade Associations. — Nothing contained in this Act shall be
construed to prohibit the existence and operation of trade associations
organized to promote quality standards and safety issues: Provided, That,
these associations shall not in any way be used to justify any violation of this
Act.

SEC. 44. Guidelines. - The Commission shall prepare the necessary
guidelines for the implementation of this Act: Provided, That, where the
guidelines would apply to an industry or a sub-sector of industry that is subject
to the jurisdiction of a regulatory agency, the Commission shall, in preparing
the guidelines, consult with the concemed regulatory agency: Provided,
further, That the Commission may revise such guidelines it deems necessary:
Provided, however, That such revised guidelines shall only take effect
following its publication in two newspapers of general circulation.

Sec. 45. Appropriations. — The amount necessary to implement the
provisions of this Act shall be included in the annual General Appropriations
Act.

Sec, 46. Separability Clause. — if any clause, sentence, section or
part of this Act shall be adjudged by a court of competent jurisdiction to be
invalid, such judgment shall not affect, impair or invalidate the remainder of
this Act, but shall be confined in its operation to the clause, sentence,
Paragraph, section, or part thereof directly involved in the controversy

Sec. 47. Suppletory Application. — For purposes of this Act, the
Revised Penal Code, as amended, and other applicable laws shall be applied
in a suppletory character.

Sec. 48. Repealing Clause. — All provisions of law, orders, decrees,
executive orders, including rules and regulations or parts thereof, which are
contrary to or inconsistent with the provisions of this Act are hereby repealed
or modified accordingly: Provided, however, That all existing competition laws
and regulations shall remain in full force and in effect: Provided, further, That
in case of conflict between this Act and such provisions of existing competition
laws and regulations, the provisions of this Act shall prevail.


Sec. 49. Effectivity Clause. ~ This Act shall take effect fifteen (15)
days following its publication in the Official Gazette or in at least two (2)
national newspapers of general circulation.

Approved,