FOURTEENTH CONGRESS OF THE REPUBLIC) 
OF THE PHILIPPINES 
) 
First Regular Session 
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S E N A T E  
S.B.No. 1122 
Introduced by Senator Miriam Defensor Santiago 
EXPLANATORY NOTE 
The Constitution, Article XII, Section 19, provides that: 
“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 
restraints 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 most 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.’ 
I This bill was originally filed in the Thirteenth Congress, ThirdRegular Session. 


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FOURTEENTH CONGRESS OF THE REPUBLIC) 
7 
J($- -4 :? 
L . i  ', 
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OF THE PHILIPPINES 
) 
First Regular Session 
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S E N A T E  
S.B.No. 1122 
Introduced by Senator Miriam Defensor Santiago 
AN ACT 
AMENDING REPUBLIC 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 
PRISIONMAYOR 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 person 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; 
3. Any person who, being a manufacturer, producer, or processor of any 
merchandise or object of commerce or an importer of any merchandise or object 
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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 lawfbl 
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 manufactured, 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. 
SECTION3. Effectivity Clause. - This Act shall take effect fifteen (15) days 
aRer its publication in at least two (2) newspapers of general circulation. 
Approved, 
dpd5-28-07 
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