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SIXTEENTH CONGRESS OF THE REPUBLIC 
OF THE PHILIPPINES 
Second Regular Session 
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SENATE 
Senate Bill No. 2282 
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,iUN 16 P 2 :23 
Prepareci by the Comll1ittee on Trade. Commerce and Entrepreneurship joint with the Committees on 
Economic Affairs . .iustice and Human Rights. and Finance with Senators Osmena Ill. Guingona Ill. 
Defensor-Santiago. Ejercito Estrada, Trillanes and Aquino IV as authors thereof. 
AN ACT PROMOTING FAIR COMPETITION TO PROTECT CONSUMER WELFARE, 
ADVANCE DOMESTIC AND INTERNATIONAL TRADE AND SUSTAINED ECONOMIC 
DEVELOPMENT BY, AMONG OTHERS, REGULATING MONOPOLIES, ANTI-
COMPETITIVE AGREEMENTS, ABUSE OF DOMINANT POSITION, AND ANTI-
COMPETITIVE MERGERS, ESTABLISHING THE FAIR COMPETITION COMMISSION 
AND AI'PROPRIA TING FUNDS THEREFOR, AND FOR OTHER PURPOSES 
l3e it enacted by the SCllitte and the House of Representatives of the Philippines in Congress assembled: 
CHAPTER I 
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GENERAL PROVISIONS 
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SECTION 1. Title - This act shall be known and cited as the "Fair Competition Act of 20 14." 
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SECTION 2. Declal'ation of Policy. - The efficiency of market competition as a mechanism lor 
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allocating, goods and services is a generally accepted precept. The State recognizes that past measures 
6; undertaken to liberalize key sectors in the economy. This needs to be reinforced by measures that 
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safeguard competitivc conditions. The State also recognizes that the provision of equal opportunities to all 
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promotes entrepreneurial spirit, encourages private invcstments, facilitates technology development and 
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transfer ~nd enhances resource productivity. Unencul1lbered market competition also serves the intere,t of 
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COnSlIl1lers by allowing thcm to exercisc their right of ehoic~ over goods and services alTered in the 
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market. 
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Pursuant to the constitutional goals for the national economy to attain a more equitable distribution of 
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opportullities, income, and wealth; a slIstained increase in the amount of goods and services produced by 
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the nation for the benefit of the people: and an expanding productivity as the key to raising the quality of 
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life for all, especially the underprivileged; and the constitutional mandate that the State shall regulate or 
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prohibit monopolies when the public interest so requires and that no combinations in restraint of trade or 
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unfair competition shall be allowed, the State shall: 


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(a) Promote ancl enhance economic efficiency alld competition in tradc\ industry and COl11merce 
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with the objective of protecting consumer welfare and advancing domestic and international tracle 
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and economic development; 
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(b) Ensure that industrial cOl1centration does not'reslllt in the exercise of economic power by a 
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few persons, including government-owned or controlled entities engaged directly or indirectly in 
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any economic activity. that threaten to control, or control production, trade, or industry in order to 
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stitle competition, distort, manipulate or constl'ict the discipline of free markets, or increase 
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relevant market prices in the Philippines; and 
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(c) Pl'Ohibit anti-competitive agreements, abuses of dominant position, and anti-competitive 
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combinations that distort, manipulate or constrict the operations of relevant markets in the 
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Philippines. 
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SECTION 3. Scope and Application -This Act shall be enforceable within the territory of the Republ ic 
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or the Philippines and shall apply to all areas of trade, industry and commerce. It shall likewise he 
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applicablc to international trade having direct, substantial and reasonably foreseeable effects in domestic 
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trade, COml11el'ce, and industry in, or national economy of. the Republic of the Philippines. including those 
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that result jj'om acts done outside the country . 
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The Act shall apply to: (a) all entities as defined hereunder and all their commercial agreements. actions 
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or transactions involving goods and scrvices; and, (b) all agents, omeers, employees, partners. owners. 
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directors, consultants, stockholders, representatives, managers, supervisol's, and all other natural persons 
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who, acting 011 behalf ofjuriciicai persons shall authorize, engage or aid in the commission of any conduct 
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prohibited under this Act. 
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This Act shall apply neither to the combinations or activities of workers or employees nor to agreements 
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or arrangements with their employers when slich combinations, activities, agreements, or arrangements 
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are designed solely to tacilitate collective bargaining i'n respect or conditions ofemploymenl. 
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SECTION 4. Definition of' Terms. As used in this Act. the following terms shall be defined as: 
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(a) "Anti-competitive agreement" refers to any type or form of contract. arrangement, 
understanding, collective recommendation or concerted action, whether formal or informal. 
explicit or tacit, written or oral. with the object or effec,t of substantially preventing, restricting or 
lessening competition: 
(b) "Conduct"' refer, to any type or form of undertaking, collectivc recolllmendation, 
independent, concerted or parallel action or practice, whether formal or informal; 
(c) "Cartel" refers to a combination of entities or persons, providing goods andlor services in 
relevant markets. acting or joined together to obtain a shared monopoly or ability to control 
production, purchase, sale and price. or to obtain control in any particular industry or commodity, 
or a group of cntities that agree to restrict trade; 
(d) "Commission"" refers to the Fair Competition Commission created under this Act; 
(0) "Competition" refers to the process by which economic agents, acting independently 111 a 
market, limit each other's ability to control the prevailing conditions in the market; 
(f) "Control" means the power to direct or cause the direction of the management policies of an 
Entity by contract, agency 01' otherwise; 
(g) "Dominant Position" refers to a position held by an entity in a relevant market, individually 01' 
jointly with others that affords it the ability to behave to a signitlcant extent independently of its 
competitors and consumel's. 
(h) "Entity" refers to 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 01' indil~ectly in any economic activity: Provided, that, two 
entities, one of which is controlled by the other, shall be treated as one entity: Provided. further. 
that two 01' more entities that are controlled by a single entity shall be treated as onc entity; 
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(i) "Goods" and "Services": 
(i) "Goods" refer to all types of tangible property that could be bought and sold. and the 
possession of which could be transferred in whole or in pmi, temporarily or permanently; 
'(ii) "Services" refer to all types of commercial activities which enable the supply. access 
to, consumption or use of goods, intellectual property or other services: 
0) "Markct" refers to the group of goods or scrvlces that are sufJiciently interchangeable or 
substitutable and the object of competition, and the geographic area where said goods or services 
are offered; 
(k) "Market concentration" refers to the distribution of production or sale within a relevant 
market. 
(I) '"Mergers" refer to situations where two or more undertakings, previously independent of one 
another, join together. This definition includes transactions whereby: (i) two entities legally 
combine into one (mergers); (ii) one entity takes sale control of the whole or part of another 
(acquisitions aI' takeovers); (iii) two or more entities acquire joint control over another entity 
(joint ventures); and (iv) other transaction whereby one or more undertakings acquire control over 
one or more undertakings, ~lIch as interlocking directorates; 
(111) "Monopoly" refers to a form of market structure in which one entity having earned a 
privi lege or obtained advantage over others, aCCollllts for the total sales of a good or service; and 
(n) "Relevant Market" refers to tile market in which a particular good or service is sold and which 
is a combination. of the relevant product market and the relevant geographic market, defined as 
follows: 
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(i) A relevant product market comprises all those goods and/or services which are 
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regarded as interchangeable or substitutable by the consumer, by reason of the goods and/or 
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services' characteristics, their prices and their intended lise; and 
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(ii) The relevant geographic market comprises the area in which the entity concerned is 
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involved in the supply and demand of goods and services. in which the conditions of competition 
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are sufllciently homogeno;ls and which can be distinguished li'OI11 neighboring areas because the 
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conditions or competition are appreciably differcnt in those areas. 
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CHAPTER II 
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FAIR COMPETITION COMMISSION 
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SECTION 1. Fail' Competition Commission. - To implement the national policy and attain the 
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objectives and purposes of this Act, an indepelident quasi-judicial body is hereby created, which shall be 
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known as the Fair Competition Commission (rCC), hereinatler referred to as the Commission, and which 
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shall be organized within one year afler the approval or this p,.ct. Upon cstablishment of the Commission, 
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Executive Order No. 45 designating the Department of Justice as the Competition Authority is hereby 
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repealed. The Ol1lce for Competition (OrC) under the Ofllce of the Secretary of Justice shall however be 
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retained. with its po IVers and functions modified pursuant to Section 9 of this Chapter. 
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The Commission shall be an attached agency to the Office of the President. 
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SICCTION 2. COl1lposition l~r the COl1lmissioll. - The Commission shall be composed or a Chairperson 
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and foul' (4) Associate Commissioners. The Chairperson and Commissioners shall be citizens and 
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residents or the Philippines, or good moral character, of recognized probity and independence and must 
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have distinguished themselves prOfessionally in public or academic service in any of the following fields: 
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economics, law, finance, commerce or engineering. They !TIlist have been in the active practice of their 
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pl'olessions for at least ten (10) years, and must not have been candidates for any elective national or local 
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omce in the immediateiy preceding elections, whether regular or special. Provided. that at least one (I) 
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shall be a member of the Philippine Bar with at least ten (10) year's of experience in the active practice of 
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law. and at least one (I) shall be an economist. preferably distinguished in the area of industrial 
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organization. 
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SECTION 3. Term '!I"Office. - rhe Chairperson and the Associate Commi"ioners shall be appointed by 
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the President of (he Philippines. The (erm of oftiee of the Chairperson and the Associate Commissioners 
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shall be seven (7) years. Provided. that in no case shall any person be a member of the Commission for 
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more than two (2) terms. 
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The Hrst Chairperson shall hold omee for seven years and of the f,rst four (4) Associate Commissioners. 
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two (2) shall hold oHice for a term of lour (4) years and two (2) for a term of three (3) years. In case a 
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vacancy occurs before the expiration of the term of office, the appointment to such vacancy shall be only 
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for the unexpired term of the predeccssor. 
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The Chairperson and the Associate Commissioners shall enjoy security of tenure and shall not be 
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suspended or removed li'olll oHice except for just cause as providcd by law. 
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SECTION 4. Pl'Ohibitiol1 alld Disqualificatiol1s. - The Commissioners shall not. during their tenure. 
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hold any other omce of employment. They shall not, during their tenure. directly or indirectly practice 
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any profession, except in a teacili'ng capacity, participate in any business, Or be financially interested in 
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any contract with, or ar;y franchise, or special privileges granted by the government or any subdivision. 
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agency, or instrumentality thereof, including government-owned and controlled corporations of their 
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subsidiaries. They shall strictly avoid conflict of interest in the conduct of their office. They shall not be 
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qualilled to run lor any ornce in the clection immediately succeeding their cessation hom olTice. They 
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shall not be allowed to appear or practice before the Commission for two (2) years following their 
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cessation fi'om omce, 
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No spouse or relative by consanguinity or affinity within the fourth civil degree and no former law. 
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business, or professional partner or associate of any of the Commissioners, the Chairperson and the 
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Executive Director of the Commission may appear as counselor agent 011 any matter pending before the 
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Commission or transact business directly or indirectly therein during incumbency and within one (I) year 
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1'1'0111 cessation of office. 
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SECTION 5. CompellSatiollalld Other Emolumentsfor Members and Personnel '!fthe Commission.-
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The compensation and other cmoluments for the members and personnel of the Commission shall be 
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cxcmpted from the coverage of Republic Act No. 6758. otherwise known as the "Salary Standardization 
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Act". For this purposc, the schedule of compensation of the Commission personnel shall he submitted 1'01' 
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approval by the President of the Philippines. 
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SECTION 6. Quorum. - Threc (3) members of the Commission shall constitute a quorum and the 
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affirmative vote of three members (3) shall be necessary l'or the adoption of any rule, ruling. order, 
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resolution, decision or other acts otthe Commission en banco 
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SECTION 7. Stl!ff. - The Commission shall appoint, fix the compensation and determine the status, 
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qualiJicatiolls and duties of its personnel, which shall include an Executive Director of the Commission. 
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The Executive Director shall be appointed by the President and shall have relevant experience in any of 
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the "elds of law. economics, commerce, management or Ilnanee 1'01' at least ten (10) years. The members 
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of the !cchnical stan: except those perf'orming purely clerical functions, shall possess at least a Bachelor 
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I Degree in the following areas of specialization: economics, law, finance, commerce, management and 
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engineering. 
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SECTION 8. Powers """ FUI/cliol/s l!f tlte Commissiol/. - The Commission shall promote competition, 
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ensure consumer welfare, and penalize abuses of market power. Towards this end, it shall have the 
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l'ollowing quasi-judicial p,owers and functions: 
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(a) Conduct inquiry or investigation pursuant to this Act; 
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(b) Monitor and take measures in accordance with this Act to penalize abuse of market power. 
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collusion, and other anti-competitive behavior by any entity; 
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(c) Investigate any violation of this Act and other existing competition laws motu proprio or upon 
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receipt of a verilled complaint from an interested party or upon referral by the concerned 
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regulatory agency, and conduct administrative proceedings; 
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(dl Upon finding that an entity has engaged in anti-competitive act or behavior, stop or redress 
the same, by applying remedies. slich as. but not limited to. imposition of price controls, i~suance 
of il\junctions, requirement of divestment, and disgorgement of excess profits, 
(e) Impose sallet ions, fines or penalties for any non-compliance with or breach of this Act and its 
implementing rules and regulations (lRR): 
(1) Issue subpoena duces teCl/1II and subpoena ad testificandulII to require the production of books, 
records, or other documents or data which relate to any matter relevant to the investigation and 
personal appearance before the Commission~ summon witnesses; administer oaths: and issue 
intel'irn orders slich as show cause and cease and desist orders in accordance with the rules and 
regulations implementing this Act: 
(g) Undertake inspections of business premises and other premises including land and vehicles, 
homes of entity directors, omcers and employees during business hours. where it reasonably 
suspects that relevant books, tax records, or other documents which relate to any matter relevant 
to the investigation are kept, in order to prevent the removal, concealment, tampering with, or 
destrllction of the books, records, or other documents; 
(h) Issue adjustment or divestiture orders including orders for corporate reorganization or 
divestment in the manner'anci under such terms and conditions as may be prescribed in the rules 
and regulations implcmenting of this Act; 
(i) Deputize any government agency to provide information and lend in the discharge of its 
responsibilities under this Act and rcquil'e slibmission or examine records and documents in the 
possession or control of stich government agency; 
(j) Monitor compliance by the persOil or entities concerned with the cease and desist order or 
consent judgment; 
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(k) Issue advisory or legal opinions and guidelines fOl' the effective enrorcement or this Act; 
(I) Intervcne 01' participate in administrative and regulatory proceedings requiring consideration 
or the pl'OV is ions of this Act that are initiated by government agencies such as the Securities and 
Exchange Commission, Energy Regulatory Commission and the National Telecomlllunications 
Commission; and 
(m) Advocate pro-competitive policies of the government by: 
a. Developing legislative proposals related to competition laws and responding to 
I'cquests for advice and comments on slich matters from Congress and other government 
agencies; 
h. Reviewing economic and administrative regulations, molu proptlo or upon request, as 
to whether or not they adversely arfect relcvant market competition. and advising the 
concerned agencies against slich regulations: 
c. Advising the Executive Branch on the competitive implications of government actions, 
policies and programs; and 
d. Preparing reports requested by Congress or the President as to the impact of laws or 
programs on relevant market competition. 
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Section 9. 
Powers (Ind Functions (If tlte Office for COl1lpetition (OFC). - The OFC. LInder the 
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Department of Justice (DOJ) shall have exclusive authority for the criminal enforcement of this Act, 
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including the investigation and prosecution of criminal cases filed hereunder, as wcll as the civil aspect of 
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such cases where the latter has not been instituted or reserved separately. It shall seek to advance the 
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antitrust jurisprudence in the country through its litigation and participation in the activities of the 
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Executive Bt'al1ch and inl'eguiatory and legislative processes. The powers and functions ofOFC include: 
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(a) Investigation and prosecution, \vhere warranted, of all criminal offenses arising under this Act 
and other laws related to the protection of competition and prohibition of restraints of trade and 
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l11onopolization~ 
(b) Conduct of studies on anti-competitive conduct. the methods and techniques used in such 
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practices, the detection of slich schemes and the effective ways of prosecuting and deterring 
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perpetrators of such orrenscs: and 
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(c) Monitoring and analysis of practices of individual and combination or foreign producers, 
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merchants 01' traders that atTect the trade of the Philippines, and report to Congress its tindings 
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and recommendations thereon as it may deem advisable, 
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The orc shall be reorganized and allocated resources as may ,be rcquired thereror to effcctively pursue its 
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mandate. 
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CHAPTER III 
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PROHIBITED ACTS 
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SECTION 1. Allti-cOlI/fietitive Agl'eemellfs, - It shall be a criminal offense for entities to enter into any 
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agreemcnt with the object and effect of unreasonably and substantially preventing, restricting or lessening 
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competition: 
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(a) Directly or indirectly fix, control or maintain prices; 
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(b) Set, limit or control production, I'elevant markets, technical development or investment to the 
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prejudice of consumers; 
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( c) divide or share the relcvant market, whether by volume of sales or purchases, territory, type of 
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goods 01' services, buyers or sellers 01' any other means; 
(d) Apply dissimilar conditions to cquivalent transactions with other parties, thereby placing them 
at a competitive disadvantage; and 
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(e) Othcr similar conduct which is similar in nature, gravity, object and effect of the above 
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enumeration shall be deemed or considered by the Commission as covered by this section. 
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Provided\ that any such agreement which contributes to improving the production or distribution of goods 
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and services or to promoting technical or economic progress, while allowing consumers a fair share oftllc 
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resulting benetits, shall not be decmed a violation of this Act. 
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SECTION 2, Abuse ,,( Domillullt Position. - It shall be a criminal offense for one or more entities to 
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abuse their dominant position by engaging in conduct that would unreasonably and substantially prevent 
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or restrict competition. Thc abuse of dominant position contemplated by this Act includes: 
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(a) Predatory behavior towards competitors, including but not limited to selling goods or services 
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below cost with the intent of driving competition out of the relevant market or creating barriers to 
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entry: 
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(b) Imposing balTiers to entry: 
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(c) Setting prices or other terms or conditions that ditfel' or discriminate unreasonably between 
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customers or sellers of thc same. goods 01' services, where such customers or sellers are 
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contemporaneollsly trading on similar terms and conditions, where the effect may be to lessen 
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competition substantially. 
Provided, that the following shall be considered permissible price 
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differentials: 
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a. socialiLcd pricing for the less fortunate sector of the economy: 
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b. price ditTerential which reasonably or approximately reflect differences in the cost of 
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nHlIlnlac:ure, sale, or delivery resuiting from differing methods 01' quantities in which the 
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goods or services are sold or delivered to the buyers or sellcrs: 
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Any analogous price differentials shall be deemed covered in this section. 
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c. price differential or terms of sale offered in response to the competitive pnce of 
payments, services or changes in the facilities furnished by competitor; 
d. price changes in response to changing market conditions. marketability of goods or 
services, or VOlllI11C~ and 
(d) imposing restrictions on the lease or contract for sale 01' trade of goods or services concerning 
where, to whom, or in what forms goods or selvices may be sold or traded, sLlch as, but not 
limited to, lixing prices, 01' giving preferential discounts, or rebate lipan such price, or imposing 
conditions not to deal with competin'g entities. where the object or elfect of such restrictions is to 
prevent, limit or lessen competition substantially; Provided, that nothing contained herein shall 
prohibit or render unlawli" permissible fi'anchising, licensing or exclusive distributorship 
agreements; 
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(e) making supply of particular goods or services dependent upon the purchase of other goods or 
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services li'om the supplier which have no direct connection with the main goods or services to be 
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supplied; 
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(1) Other similar conduct which is similar in nature, gravity, object and effect of the above 
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enumeration shall be decmed or considcred by the Commission as covered by this section. 
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CHAPTER IV 
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MERGERS AND ACQUISITION 
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SECTION 1. Review '!f Mergers ((lid Acquisitioll. - The following agreements are decmed to increase 
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relevant market concentmtion: 
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(a) two or more' previously independent entities combine or amalgaillate the whole or part oftheir 
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business; or 
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(b) Olle 01' more entities acquire, whether by purchase of sccurities or assets, by contract or by 
other means, direct or indirect contr~1 of the whole or parts of one or more other entities. 
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SECTION 2. ComplI/sofY Not({ication. -
Par,ties to the merger or acquisition agreement referred to in 
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the prcceding Section that will produce a relative market concentration greater than the threshold 
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determined by the Commission pursuant to Section 4 of this Chapter are prohibited !i'om implementing 
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their agreement until thirty (30) calendar days have lapsed from notification to the Commission. An 
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agreement implemented in violation of this requirement shall be considered voidable and subject the 
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partics to the corresponding penalties therefor. 
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The Commission may, however, request further information ii'om the parties to the agreement before the 
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expiration of the atorementioned thirty (30)-day period. The issuance of such a request has the effect of 
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extending the period within which the agreement may not be implemented for an additional thirty (30) 
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days, beginning on the day aller substantially all of the requested information is supplied to thc 
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Commission. When the period has expired and no decision has been handed down, it shall be understood 
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that the Commission has no objections to the proposed merger or acquisition. 
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In the case of the merger 01' acquisition of banks, banking institutions, building and loan associations, 
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trust companies, insurance com"panies, public utilities, educational institutions and other special 
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corporations governed by special laws, a favorable 01' no-objection ruling by the Commission shall not be 
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construcd as dispensing or the requirement for a lavorable recommendation by the appropriate 
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government agency under Section 79 of the Corporation Code ofthe Philippines, 
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SECTION 3. E.lfect I!f Notification. -
Ifi within the relevant periods stipulated in Section above. the 
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Commission determines that such agreement is prohibited under Section 5 and does not qualify for 
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exemption under Section 6 ofthis Chapter, the Commission may: 
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(a) prohibit the implementation ofihe agreement; 
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(b) prohibit the implementation of the agreement unless and lIntil it is modified by changes 
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specified by the Commission; or 
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. (c) prohibit the implementation of the agreement unless and until the pertinent party or parties 
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enter into legally enforceable agreements specified by the Commission. 
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SECTION 4. Notificotioll Threshold. - The Commission shall from time to time adopt and publish 
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regulations stipulating: 
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(a) the relevant market concentration threshold subject to the notification requirement of Section 
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2 of this Chapter; 
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(b) the information that nUIst be supplied for notit1ed mergers or acquisition: 
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(c) exceptions or exemptions fi'om the notification requirement and 
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(d) other rules relating to the notification proc~dures. 
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SECTION 5. Prohibited Merger ond Acquisition. - Merger or acquisition agreements that will prevent 
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or services as may be determined by the Commission shall be prohibited. 
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SECTION 6. Permissible Merger olld Acquisition. - Merger or acquisition agreement prohibited under 
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Section 5 of this Chapter shall. nonetheless, be exempt from prohibition by the Commission \vhen the 
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p.arties.establish either of~he following: 
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(a) The concentration has brought about or is likely to bring about gail;s in emciencies that are 
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greater than the effects of any limitation on competition that result or likely to result fi'OJ11 the 
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merger 01' acquisition agreement; or 
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(b) A party to the merger or acquisition agreement is faced with actual or imminent tinancial 
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failure, and the agreement represents the least anti-competitive arrangement among the known 
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alternative lIses for the failing entity's assets. 
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SECTION 7. Burdell ,!(Proo.t: -' The burden of proof under Section 6 lies with the parties seeking the 
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exemption. A party seeking to rely on the exemption specified in Section 6 (a) must demonstrate that if 
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the agreement were not implemented, significant efficiency gains would not be realized. 
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SECTION 8. NOIl-colltestllble Acts. - The following merger or acquisition agreements may not be 
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challenged under this Act: 
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(a) Merger or acquisition agreemcnts tliat have reccived a favorable ruling from the Commission, 
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cxcept when such ruling was obtained on the basis of false information; and 
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(b) In the case of merger or acquisition agreements that do not require prior notification, a year 
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after their establishment. 
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CHAPTER V 
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DISPOSITION OF CASES 
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SECTION 1. Determillatioll of Allti-Competitive COllduct. -
In determining whether anti-competitive 
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conduct has been committed, the Commission shall: 
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(a) Detlnc the relevant markct allegedly affected by the anti-competitive conduct, following the 
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principles laid out in Section 2 of this Chapter; 
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(b) Determine if'there is actual or potential adverse impact on competition in the relevant market 
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caused by the alleged conduct, and if such impact is substantial and outweighs the actual or 
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potential efJIciency gains that result from the conduct; 
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(c) Adopt a broad and forward-looking perspective, recognizing future market developments, but 
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also taking accollnt of past behavior ofthe parties involved and prevailing market conditions; 
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(d) Balance the need to ensure that competition is not prevented or substantially restricted and the 
risk that competition may bc deterred by overzealous intervention; anel 
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(e) Assess the totality of evidence on whether it is more likely than not that the entity has engaged 
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in anti-competitive conduct. 
-' 
SECTION 2. Relevallt Market. - For purposes of detilling the relevant market. the following factors 
4 
affecting the substitutability among goods or services constituting slIch market and the geographic area 
5 
delineating the boundaries of the market shall be considered: 
"6 I 
(a) The possibilities of substituting the goods 01' services in question, with others or domestic or 
I 
7 
foreign origin, considering the technological possibilities, extent to which substitutes are 
8 
available to consumers and time required Cor such substitution; 
9 
(b) The cost of distribution of the good or service. its raw materials, its supplements and 
10 
substitutes ii'om other areas and abroad. considering freight, insurance. impoll duties and non-
II 
tariff restrictions; the restrictions imposed by economic agents or by their associations: and the 
12 
time required to supply the market from those areas: 
13 
(c) The cost and probability of users or consumers seeking other markets; and 
• 
14 • 
(d) National, local or international restrictions which limit access by users or consumers to 
15 
alternate sources of supply or the access of suppliers to alternate consumers. 
16 
SECTION 3. Prima Facie Presumptio11. -
If the conduct is among the acts referred to in Chapter lll, a 
17. 
prima facie presumption of violation of this Act will be deemed established if the entity committing such 
18 
act has market ,dominant position in the relevant market. 
19 
SECTION 4. Market D011litu/llt Positio11. -
In determining whether an enrity has market dominant 
20 
position for purposes of this Act, the Commission shall consider the following: 
.21 
(a) The share of the entity in the relevant market and whether it is able to Ex prices unilaterally or 
• , 
22 
to restrict supply in the relevant market; 
16 


• 
2 
3 
5 
• 
(b) The existence of barriers to cntry and the elements which could foreseeably alter both said 
barriers and the supply from cOl11pctitor~: 
(c) The existence and power of its competitors: 
(d) The possibility of access by its com pet itors or other entities to its sources of inputs: 
(e) Its recent conelucts; and 
6 
~ 
(I) Other criteria established by the regulations ofthis Act. 
7 
There shall be a rebuttable presumption of market domina!lt position if the share of an entity in the 
8 
relevant market is equal to or greater than the threshold for dominant position stipulated by the 
9 . Commission for that particular sector. 
10 
The Commission shall jj'om time to time determine and publish the threshold for dominant position or 
11 
minimulll level of share in the relevant market that could give rise to a presumption of dominant position. 
12 
In slich determination, the Commission would consider the structure of the relevant market, access to end-
13 
users, technology and Jinancial resources, and other factors affecting the control of an entity, as provided 
.14 
in sub-sections ( a) to (1) of th is Section, 
15 
SECTION 5, FOl'beanmce, - Any entity may request to be exempted hom the enforcement of this Act 
16 
by submitting a written request for forbearance to the Commission. 
17 
The Commission may forbear froil1 applying the provisions of this Act, 111 whole or in part, 111 all or 
18 
specific cases, on an entity, if in its determination: 
19 
(a) Enforcement is not necessary to ~he attainment orthe policy objectives of this Act; and 
• 
17 


• 
• 
(b) Forbearance will not impede competition in the relevant market where the entity seeking 
• 
:2 
exemption operates nor in relateclmarkets 
3 
A public hearing may be held to assist the Coml11ission in making a determination on the request for 
--l 
forbearance. 
5 
The request lor. forbearance and the Commission's order, exempting the relevant party or parties under 
6 
this Section shall be made public. Conditions may be auached (0 the forbearance if the Commission 
7 
deems it appropriate to ensure the long-term interest of consumers. 
8 
In the event that the basis for the issuance of the exemption order ceases to be valid, the order may be 
·9 
withdrawn by the Commission. 
10 
CHAPTER VI 
I I 
FINES AND PENALTIES 
12 
SECTION 1. Penalties. -
13 
14 
15 
16 
17 
18 • 
19 
20 
21 
22 
23 
24 
25 
(a) Without prejudice to the violation of other laws. any entity found to have violated this Act 
shall, for each and evelY violation" be pllllished by a tine of not less than Ten Million Pesos 
(PhI' I 0,000,000.00) and not exceeding Fifty Million Pesos 
(Php50.000,000.00) if a natural 
entity; by a tine of not less than Two Hundred Fifty Million Pesos (Php250,000,000.00) but not 
exceeding Seven Hundred Filly Million Pesos (Php750,000,000.00) if a juridical entity, at the 
discretion of the Commission. 
(b) Failure to Comply With An Order of the Commission. - Any entity which 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 line of not less than Ten Million pesos 
(PhpIO,OOO,OOO.OO) for each violation. Each violation shall be deemed a separate oilcnse: 
Provided, that in the case of a violation through a continuing lililure or neglect to comply, each 
day of continuance of sllch failure or neglect shall be deemed a separate offense. 
18 


(c) Supply of Incorrect or Misleading Information. - The Commission inay likewise impose upon 
. ') 
any entity fines of not less than Ten Million Pesos (PhplO,OOO,OOO.OO) where, intentionally or 
3 
negligently, they supply incorrect or misleading information in any document, application or 
other paper flied with or submitted to the Commission or supply 
incorrect or mislcading 
5 
information in an application for a binding ruling, a proposal for a consent judgment. procccdings 
() 
relating to a show cause OI~der. or application for modification of the Commission's ruling, order 
7 
or approval, as the case lllay be. Provided, that in the case of a violation through a continuing 
8 
failure or neglect to supply the correct information, each day of continuance of such failure or 
<) 
neglect shall be deemed a separate offense. 
10 
SECTION 2. Cri",inal Penalties - Without prejudice to the violation of other laws, any entity that shall 
II 
bc found to have violated this Act shall, for each and every violation, be puniShed by a fine of not less 
• 
'12 • than Ten Million Pesos (Phpl0,OOO,000.00) and not exceeding Fifty Million Pesos (PhI' 50,000,000.00) 
13 
if a natural entity: by a line of not less than Two Hundred Filly Million Pesos (Php250,000,000.00) but 
14 
not exceeding Seven Hundrcd Fifty Million Pesos (Php750,000,000.00) if a juridical entity, and by 
15 
imprisonment not exceeding ten (10) years, or both, at the discretion of the court. 
16 
1'.01' purposes of determining the persons upon whom the punishment of imprisonment as provided under 
17 
the preceding paragraph shall be imposed, provisions of the Revised Penal Code, Title II, Articles 16, 17, 
18 
18 and 19 on criminal liability of principals, accomplices, and accessories shall apply. 
19 
CHAPTER VII 
.20 
ENFORCEMENT 
21 
SECTION 1. Illqllil:v into Anti-col1lpetitive Cases. -
The Commission shall 1110lu proprio, or upon the 
22 
liling of a verified complaint by an interested party or upon referral by the concerned regulatory agency, 
23 
initiate an inquiry for the enforcement of this Act. 
19 
•


Provided, that without prejudice to Sections I and 2, Chapter III of this Act a criminal case for violation 
2 
of this Act shall be "led or instituted by a pr'ivate party dil'ectly in court, unless there has been an inquiry 
3 
conducted by the Commission and the same has been endorsed jar tiling by the Commission . 
• 
• 
4 
SECTION 2. Relatiol1ship lVilh Regul{(/O/:l' and Other Government Agencies. - The Commission shall 
5 
have primary jurisdiction over competition issues. The exercise or functions and powers by the 
6 
Commission shall be cumulative to the power and authority of the dirfcrent government agencies over an 
7 
industry or a sector or an industry and shall not in any way derogate the power and authority or the 
8 
concerned agency. The relevant regulators 01' government agencIes shall exercise their authority, 
? 
particularly on competition-related issues, in a manner consistent with thc principles embodies in this Act. 
10 
The Commission shall enter into agreement with any sector regulator or government agency to coordinate 
I I 
and harmonize the exercise of jurisdiction over competition issues in the relevant industry or sector to 
12 
ensure consistent application of the principles embodied in this Act. Such an agreement shalL among 
'13 
others, identily and establish proccdures for thc coordination and management of issues of concurrent 
14 
jurisdiction and provide tor exchange of information; Provided, that, in the absence of an agreement, if a 
15 
regulator or other government agency is mandated under its chat1er or other specific provisions of law to 
16 
exercise jurisdiction over a competition-related case, it shall inform the Commission of its intention to 
17 
exercise the prescribed runctions in relation to that case. Should the Commission deem that it is better-
18 
ecjuipped to adjudicate or otherwise resolve the case, it shall issue a counter-notification to the relevant 
19 
regulator 01' government agency stating the Commission's assumption and exercise or its jurisdiction and 
20 
request the cooperation and advisc or the regulator or government agency, particularly on technical issues 
21 
011 which the latter has'l11ore knowledge and competence. In case of dispute between the Commission and 
22 
the regulator 01' other government agency on jurisdiction over a case, it shall be resolved pursuant to 
='3 
Chapter 14 of the Administrative Code of 1987 . 
• 
• 
24 
The Commission shall enlist the assistance or any branch, department, bureau, office, agency or 
25 
instrumentality of the government in undertaking any and a!1 mandated functions undcr this Act, which 
26 
may include the use of its personnel, facilities and resources tor the more resolute prevention or anti-
27 
competitive conduct, detection or such violations and prosecution of offenders. 
20 


SECTION 3. Power to 'Investigate and Enforce Orders and Resorutions. -
The Commission shall 
:2 
conduct inquiries by administering oaths, issuing subpoena duces lecum and summoning witnesscs~ and 
3 
cOl1lmissioning consultants or experts. It shall determine if any provision of this Act has been violated, 
4 
enforce its mders and carry out its resolutions by making use of any available means, provisional or 
5 
otherwise, under existing laws and procedures including the power to punish for contempt and to impose 
. 6 
Jines; Provided. that. this provision shall be without prejudicc to the specific powers vested in the OFC by 
7 
virtue of its jllrisdiction under Section 9 of Chapter II to investigate and prosecute criminal cases arising 
8 
ti'OJl1 violations or this Act. 
9 
SECTION 4. Se!(-incrimiIUltiO/I. -
Pursuant to the preceding section, an entity subject of any 
10 
p"eliminary inquiry or investigation by the Commission or the OFC shall produce the specitled document 
I I 
or information when so required by written notice subject only to the limitations provided ror in Article 
12 
Ill, Section 17 orthe 1987 Philippine Constitution. 
13 
SECTION 5. Privileged Communication Excfll.l'ion. - Nothing in the preceding: section shall compel the 
14 
disclosure of privileged communication: Provided, that the entity who refuses to disclose the information 
• 
15 • or produce the document or other material required by the inquiring omcer in relation to the preliminary 
16 
inquiry being conducted shall nevertheless be obliged to give the name and address of the entity to whom, 
17 
01' by whom, or on whose behal( such privileged eommuniea!ion was made. 
18. SECTION 6. CO/~fidellti{/fity l!( lt~(orl1l{/ti{/ll. - Any document or information submitted by entities, as 
19 
d.eternlined and marked ,ontldential by the Commission, relevant to any investigation being conducted 
20 
plll'suant to this Act shall not, in any manner, be directly or indirectly disclosed, published, transferred, 
21 
copied, or disseminated. The identity of persons or entities who provide information to the Commission 
:?2 
and who need confidentiality to protect themselves against economic retaliation, and any Commission 
23 
deliberations in regard to current or still uncompleted matters shall remain contidential. 
24 
Any violation of this provision shall be imposed a fine of not less than One Hundred Thousand Pesos 
25 
(Php I 00,000.00) but not more than Five Hundred Thousand Pesos (Php500,OOO.OO). 
21 


• 
III 
.11 
SECTION 7. Lelliellcy Program. - The Commission shall, in coordination with the orc, develop a 
2 
Leniency Program to be granted to any entity in the form of immunity from suit Or reduction of any fine 
.1 
. which would otherwise be imposed on a participant in a cartel, in exchange for the voluntary disclosure of 
"* 
information regarding the cartel which satisfies specific criteria prior to or during the investigative ~tage 
5 
of the case. 
(] 
Immunity hom suit will be granted to an entity reporting illegal anti-competitive activity before an 
7 
investigation has begun if the following conditions are met: (a) at the time the entity comes forward, the 
8 
Commission or the OFC has not received information about the activity trom any other source; (b) upon 
<) 
the entity's discovery of illegal activity, it took prompt and effective action to terminate its participation 
10 
therein: (c) the entity reports the wrongdoing with candor and completeness and provides full, continuing, 
I I 
and completc cooperation throughout the investigation; and (d) the entity did not coerce another party to 
12 
participate in the activity and clearly was not the leader in, or the originator of, the activity. 
13 
Even aner the Commission or the orc has received information about the illegal activity after an 
14 r investigation is commenced, the reporting entity will be granted leniency, provided preceding conditions 
15 
(b) and (c) and the following additional requirements are complied with: (i) the entity is the first to come 
16 
forward and qualify for leniency; (ii) at the time the entity c.omes forward, the Commission or the OFC 
17 
does not have evidence against the entity that is likely to result in a sustainable conviction; and (iii) the 
18 
Commission or the OFC, as appropriate, determines that granting leniency would not be unfair to others. 
19 
Such program shall include the immunity fi'om any suit or charge of affected parties and third parties. 
20 
exemption, waiver, 01' gradation of fines ancl/or penalties giving precedence to the entity submitting such 
21 
evidence. An entity cooperating or furnishing information, document or data to the Commission or the 
22 
OFC in connection to an investigation being conducted shall not be subjected to any form of reprisal 01' 
.23 
discrimination. Such reprisal or discrimination shall bc considered a violation of this Act subject to the 
24 
sanctions provided in this Act. 
25 
Nothing in this section shall preclude prosecution for entities that report to the Commission or the OFC 
26 
false, misleading, or malicious information, data or documents damaging to the business or integrity of 
27 
the entities under inqliiry as a violation of said Section. 
An entity found to have repOlicd false, 
22 


misleading 01' maliciolls information, data, or document may be penalized by a fine not less than the 
2 
penalty imposed in the Section reported to have been violated by the entity complained or. 
3 
SECTION 8. Termination and Actioll Oil Preliminary Inquiry. - The Commission. after considering 
"I 
the statements made. or documents or articles produced. in the course of an inquiry conducted by it, shall 
• 
5 
terminate the preliminary inquiry by issuing a resolution ordering its closure if no violation or 
(, 
T infi'ingement of this Act is found; or by issuing a nolo contendere resolution: or issuing a resolution to. 
7 
singly or cumulatively, (a) impose penalties in thc range provided under Chapter VI, Section I hereof; (b) 
8 
order the rectillcation of celtain 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 
10 
suit in the name of the Republic of the Philippines, as parens patriae, on behalf of persons residing in the 
I I 
Philippines and injured OF otherwise atfected by the violation or inti'ingement, to secure treble damages 
12 
for any injury sustained by such persons by reason of any violation of this Act, plus the cost of suit and 
IJ 
reasonable attorncy's lee, Ifthe evidence so warrants, and without prejudice to Section I, Chapter VII, the 
14 
Commission may tile criminal cases for violation· of this Act or relevant laws before the Department of 
IS 
Justice pursuant to Section 9, Chapter II and Section 2, Chapter VI of this Act. 
16 
SECTION 9. Nolo Contendere Resolution. -
Any entity whose business conduct is under inquiry 
17 
pursuant to this Act may submit to a nolo contendere resolution at any time before the termination of the 
18 
preliminalY inquiry by: a) paying an amount within the range of penalties provided for under Section 2, 
19 
Chapter VI; b) entering into an uhdertaking to effectively stop and rectify the acts complained against, 
20 
make restitution to the 'anect'ed parties, whether or not the parties are plaintiffs 01' witnesses; and, c) 
21 
submitting regular compliance reports as may be directed: Provided, that, ten percent (10%) of the 
22 
amonnts paid under this Section shall equitably accrue to the Commission: Provided, further, that a nolo 
23 
contendere resolution shall not bar any inquilY fOl' the 'same or similar acts if continued 01' repeated, 
24 
SECTION 10. NOII-Adver,Wtria Administmtive Remedies. -
As an implementing and enforcement 
• 25 .. policy, the Commission shall, under such rules and regulations it may prescribe, encourage voluntary 
26 
compliance with this Act and other competition laws by making available to the parties concerned the 
27 
lollowing and other analogous non-adversarial and non-adjudicatOl), administrative remedies, before the 
28 
institution of administrative, civi I or criminal action: 
23 


• 
2 
, -, 
7 
8 
9 
10 
II 
12 
13 
14 
15 
16 
17 
18 
19 
20. 
21 
22 
23 
24 
.25 
26 
27 
• 
(a) Request for Binding Ruling. Any entity who is in doubt as to whether his contcmplated or 
. cxisting 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 competition laws, or implementing 
rules and regulations thereot: may request the Commission, in writing, to render a binding ruling 
thereon, 
(b) Show Cause Order. Upon preliminary findings motu proprio or on writtcn complaint under 
oath by an interested party, that any entity 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 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 miCi serve upon such entity or entities a written description of its business 
conduct complained of, a statement ofthe facts, data, and information together with a summary of 
the evidence thereof, with an order requiring the said entity or entities 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 
speciiied, or readjust its business conduct or practices; 
(c) Proposal for Consent Jndgment. At any time prior to the issuance of a binding ruling, the 
pl'Omulgation of a cease and desist judgment under a show cause order 01' the promulgation of a 
decision of judgment in any administrative, civil, 0\ criminal case, the entity or entities, whose 
business conduct is under inquiry in the particular proceedings may, without in any manner 
admitting a violation of this Act or any other competition laws, submit to the Commission a 
written proposal for the entry of a consent judgment, specifying therein the terms and conditions 
of thc proposed consent judgment. 
(d) Consultations. Prior to the tiling of a request for a binding ruling or submission of a proposal 
for consent judgment, the entity or entities concerned may communicate, in writing, with the 
Commission on matters thaI should be included or excluded in such requcst or proposal, which 
the Commission may consider necessary for the effective enforcement of this Act or other 
competition laws. 
24 


(e) Binding Rnling, Cease and Desist Order, and Consent Jndgment. Based upon the facts, 
2 
data. and information disclosed or supplied by th~ entities concerned, or established by 
J 
substantial evidence during the hearing, the Commission shall issue a binding ruling, a cease and 
4 
desist order 01' an approval of the proposal for a consent judgment, as the case may be, with 01' 
5 
without conditions. to the elfect that the particular act, coursc of conduct. agreement, decision or 
6 
practice is in accord with this Act' or other competition laws, OJ' is exempt therefrom. or is 
7 
constitutive of a violation thereor. If the Commission finds thai there is substantial evidence 
8 
lending to show that the act, course of concluct, agreement, decision or practice of the person or 
• 
• 
<) 
I 
persons concerned is prohibited. it shall include in its decision an order requiring the person or 
10 
persons concerned to: 
II 
a. cease and desist from continuing with the identified act, course or conduct agreement, 
12 
decision, or practice found to be in contravention to the provisions of this Act; 
13 
b. pay the finc therein fixed; and 
14 
c. readjust, within a reasonable· period therein itxed, its method of doing business, 
IS 
including a corporate reorganization or divestment in the manner and under the terms and 
'16. 
conditions prescribed by the Commission, as it may deem proper for the protection of the 
II 
17 
public interest. 
18 
(I) SUSIJension of Administrative, Civil 
01' Criminal Proceedings. 
Any 
pending 
19 
administrative, civil or criminal proceedings or those filed 
thercafter~ against any perSall, 
, 
20 
corporation or any other juridical entity or its officers and employees. may be suspended, upon 
21 
order of the Commission on proper motion, on the ground of the filing of a request 1'01' binding 
22 
ruling, the issuance of a show cause order or the filing of a proposal tar a consent judgment 
23 
based, in whole or in part, on the Same set o(facts and issues as that of the proceedings sought to 
24 
be suspended; 
• 
• 
25 


• 
• 
(g) Monitoring of Compliance. The Commission shall monitor the compliance by the entity or 
2 
entities 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 isslIe a certification to the effect that the entity or entities concerned have, or 
5 
have not as the case may be, complied with a final and executory ruling. order, or approval: 
6 
(h) Inadmissibility in Evidence. The request for a binding ruling, the show cause order. or the 
7 
pmposal for consent judgment; the facts, data, and information therein contained or subsequently 
8 
supplied by the entity or entities concerned; admissions, oral or written, made by them against 
9 
their interest; all other documents filed by them including their evidence presented in the 
'10 
proceedings before the Commission; and the judgment rendered thereon. shall not be admissible 
II 
as evidence ill any administrative, civil or criminal proceedings against such entity or entities, 
12 
their omcers, employees, and agents nor constitute a basis for the introduction of the binding 
13 
ruling, the cease and desist order. or the consent judgment as pl'ima facie evidence against such 
14 
entity or entities in any sllch action or proceeding; 
15 
(i) Modification or Reversal of Ruling, Order or Approval. The Commission may motu 
16 
proprio or upon petition of an interested party, after notice and hearing, reopen and alter, modify. 
17 
or set aside, in whole or in part, a binding ruling, a cease and desist order, or an approved consent 
18 
judgment: 
19 
a. whenever conditions ol'material fact or law have so changed as to require such action~ 
• 
• 
20 
b, when the concel'l1ed entity or entities fail or refuse, without justifiable cause therefof'c, 
21 
to comply with any condition attached to s~lch ruling, order, or approval, including an 
22 
order to readjust their method of doing business; or 
23 
c, when the ruling, order, or approval was based on deliberately falsified material fact, 
. 
24 
data, Of' information supplied by an interested palty benelited by sllch ruling, order, or 
25 
approval. 
26 


The modification or reversal of a binding ruling, a cease and desist order, or an approved consent 
2 
judgment shall have no retroactive etfeet and shall not affect or impair any right legally acquired 
J 
prior to the modillcation or "eversal thereof except. that the party who is guilty of unjustified 
'" 
lailure or refusal to comply as specified in (b) hereol; or have deliberately supplied such falsi tied 
5 
material fact, data or information as specitied in (c) above. is barred from claiming any vested 
6 
right therein. 
7 
SECTION 11. COl/telllpt. - The Commission or any of its Divisions may summarily punish 1'01' contempt 
8 
by imprisonment not exceeding thirty (30) days or by lIne, or both, any entity guilty of such misconduct 
. 
9 
in the presence of the Commission or any 'of its Divisions in its vicinity as to seriOllsly interrupt any 
10 
hearing, session or any proceedings before it, including cases in which an entity willfully fails or refuses, 
I 1 
without just calise, to comply with a summons. subpoena or subpoena duces tecum legally issued by the 
• 
12 r Commission or any of its Division, being present at a hearing, proceeding, session or investigation. 
13 
retirsed to be sworn as a witness or to answer questions or to furnish information when lawfully required 
14 
to clo so. 
15 
SECTION 12. Decisiol/s ,,(the COlllmissio11. - Decisions of the Commission en banc shall be appealable 
16 
to the Court of Appeals l,lS hereinafter provided. The appeal shall not stay the order, ruling or decision 
17 
sought to be reviewed, unless the Court of Appeals shall direct otherwise upon such terms and conditions 
18 
it may dcem jus!. 
19 
SECTION 13. Appeal to the COli/'{ l!( Appeals. - Any party who has actively participated in the 
,20 
proceedings bel'ore the COlllmission and is adversely affected by a binding ruling, order, or resolution, 
21 
decision, judgment, rule or regulation promulgation after notice and hearing by the Commission sitting en 
n 
banc, may appeal, by means of a notice of appeal and a verified petition f'or review served upon the 
23 
Commission and other parties who actively participated in the proceedings, to the Court of Appeals 
24 
within thirty (30) days jj'om receipt thereof on the ground that the appealed action of the Commission is: 
25 
(a) Arbitrary to constitutional rights, power, privilege, or immunity; 
26 
(b) Contrary to constitutional rights, power, ptivilege, or immunity; 
27 
• 
• 


• 
(c) In exccss of statutory jurisdiction, authority, 01' limitations, or is contrary to law~ 
• 
• 
2 
(d) Without observance of the procedure required by law; and 
3 
(e) not supported by substantial evidence. 
4 
The Comlllission shall be included as a party respondent to the case and shall be represc11led by its own 
5 
legal stafr. 
6 
SECTION 14. Appea' to the Supreme Court. - A decision of the COlllt of Appeals may be appealed to 
7 
the Supreme Court in the manner and on the grounds prescribed by the Rules of Court . 
. 8. SECTION 15. Reception ,,( Additiolla' Evidence. -
Any party in the appellate proceedings may apply 
, 
9 
for leave to the Court of Appeals or the Supreme Court, to adduce additional evidence before thc 
10 
Commission. The Court may, under such terms and conditions as it may prescribe, order the Commission 
I I 
to receivc such additional evidence upon showing that it is material and there are reasonable grounds for 
12 
the failure to present said evidence in the proceedings before the Commission. The Commission. sitting 
13 
en banc, Illay modify its findings as to the Jacts. or make new findings, by reason of the additional 
14 
evidence taken, and it shall file with the appellate eoult such modified or new findings and its 
15 
recommendations for the aJllnnation. modification, or selling aside of the appealed binding ruling. order, 
16 
resolution, decision, judgment, rule or regulation .. 
17 
SECTION 16. Writ of Execution. - Upon the finality of its binding ruling. order. resolution. decision, 
18 • judgment, or rule or regulation, (collectively, "Decision"). the Commission may issue a writ of execution 
19 
to enfc)rce its decision and the payment ofthe administrative fines provided in the preceding sections. 
20 
SECTION 17. Vi,,'atioJl by COI1JOl'lItioJl, Partnership, Association, and Other Entity. - Whenever a 
:?! 
corporation, partnership, association, entity or other entity, whether domestic or foreign, shall commit any 
22 
of the acts declared to b~ unlawfi.d under this Act. the chail-person of the board of directors, president, 
28 


general managel' of the corporation, general paliners of a partnership, and officers and employees directly 
2 
responsible, shall be jointly and severally liable with the entity for the fine imposed therein. 
3 
Should the oiTense be committed by a foreign corporation licensed to do business in the Philippines, the 
4 
entity or entities directly responsible in the Philippines for the management and operation thereot: shall be 
5 
liable. In addition, its license to do business in the Philippines shall be cancelled. 
6 
Lack of inlol'l11ation aboul or ignorance of the violation may not be offered as a defense by the 
7 
Chairperson of the Board of Dire~tors, the President or the General Manager of the corporation or the 
8 
general partners of a partnership, or the persons responsible for the management and operation of a 
9 
ioreign corporation licensed to do business in the Philippines. unless the same can establish to the 
I () 
satisfaction of the court that even with the exercise of due diligence and proper supervision, the violation 
II 
could not have been avoided or prevented. ' 
12 
Any agreement between an omcer, partner or any other of1icer and a corporation or partnership whereby 
, 
, 
13 
the latter directly or indirectly agrees to assume, satisfy or indemnify, in whole or in part, the fine of civil 
14 
obligation imposed under this Act 011 such corporate of ticer, partner, manager or other officer found 
15 
guilty orviolating this Act, shall be void. 
16· SECTION 18, (J.tli!ll!,e,\· by F{)reign Nati{)l1als. - A foreign entity found violating any provision or this 
17 
Act shall, in addition to the other penalties imposed herein, be deported aCter service of sentence without 
18 
need of any further proceedings. 
19 
SECTION 19, Essel1/illl COII/II/odities, -
If the violation involves the trade Or movement of prime 
20 
commodities such as rice, corn, sugar, chickell. pork, beef, tish, vegetables, and other articles or 
,21 
commodities of prime or basic necessity as declared by the appropriate government agency, through 
22 
publication, the tine imposed by the Commission or the cOlllis, as the case may be. shall automatically be 
23 
tripled and the olTender shall pay such threefold fine. 
24 
SECTION 20, Privllte Actio/l, - .Regardless of the status or pendency of any proceedings, any entity that 
25 
SlitTers injury by reason' of any violation of this Act may instit~lte a separate and independent civil action, 
29 


• 
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 
.1 
no tiling fees shali be collected: Provided, further, that filing fees shall constitute a first lien in the award 
4 
of damages. 
5 
• 
6 
7 
x 
10 
II 
12 
13 
'14 
IS 
16 
17 
18 
19 
20 
21 
22 
23 
SECTION 21. Effect I!f' Final Judgment. -
Any tinal judgment in a civil or criminal action brought by 
• , 
. the Commission on behalf of the people ofthc Philippines under this Act to the effect that a defendant has 
violated any or ali of the provisions of this Act shall be I'es judicata as to any claim by any entity on 
whose behalf such action was brought: Provided, that such entity notifics the court having jurisdiction of 
the case within the period given by the court: Provided, further, that such period shall not be less than 
ninety (90) days, 
It shali 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, 
SECTION 22. Distribution 1!f'Damages Recovered. - The damages recovered in a civil action under 
Section 8 of this Chapter shall be distributed in the following manner: (I) as determined and to be 
authorized by the Court having jlll'isdiction of the case; (2) ten percent (10%) of the total amount of 
damages shall accrue to the Commission andlol' regulatolY agency to be used exclusively in thc 
enioreement of this Act; and, (3) the remainder of the 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 COUlt shall give preference to 
individual consumers and anord each person having an interest a reasonable opportunity to secure his 
appropriate portion of the net damages obtained. 
SECTION 23. Measurement of Damages. - Damages may be proved and assessed in the aggregate by 
24 • statistical or sampling methods, by the computation of illegal overcharges, or by such other reasonable 
25 
system of estimating aggregate damagcs as the court in its discretion may permit without the necessity of 
26 
separately proving the individual claim, ot: or amount of damage to, persons on whose behalf the suit was 
27 
brought. 
30 


SECTION 24. IlIIlIlIlIlity/rol11 Suit. - The COlTImissioners and the Staff of the Commission shall not be 
2 
slibject to any act ion, ciliim or demand in connection with any act done or omitted by them in the 
3 
performance of their duties and exercise of their powers except for those actions and omissions done in 
4 
evident bad faith or gross negligence. 
5 
The Commission shall indemnify each Commissioncr and Staff of the Commission for all costs and 
6 
expenses reasonably incurred by such persons in connection with any civil or criminal actions. suits or 
7 
proceedings, to which thcy may bc or made a party by reason of the performance of their duties or 
8 
exercise of their powers, unless they are finally adjudged in slIch actions or proceedings to be liable for 
<) 
evident bad faith or gross negligence. 
I 0 
CHAPTER VIIl 
I I 
OTHER PROVISIONS 
12 
SECTION 1. Stlltute l!f LimitlltiO/ls. - Any 'civil or criminal action to enforce any cause of action arising 
13 
from a violation of any provision of this Act shall be forever barred unless commenced within five (5) 
14 
years aner the cause or action accrues. The running or the statute of limitation shall be suspended during 
• 
• 
15 
lhe pendency of any proceeding. 
16 
The cause of action begins to run when lhe plaintiff suffers,injury to its business or propelty: Provided. 
17 
lhal When lhe damage suffel'ed by the plaintiff is too speculative to prove, the cause of action does not 
18' 
accrue until the damage becomes probable: Provided, however, that if the plaintiff's injury is the result of 
19 
the continuing· violations of this Act. each independent. anti-competitive act may restart the limitalion 
20 
period or when a plaintiif reasonably fails to uncover a cause or action that was fraudulently concealed by 
2 I 
a defendant. 
22 
SECTION 2. Pro/tibit;o/l Oil the ISSlIllllce of Temporllry Restmillillg Orders, PrelimilllllY Injullctions 
, 23 I 
{lilt! Preliminary Mandatmy b~illJ1Ctiolls. - Except for the Supreme Court, no other court shall issue any 
, 
24 
lemporary restraining order. preliminary injunction or preliminary mandatory injunction against the 
25 
COI11n1ission in the exercise of its duties or functions: Provided. that, this prohibition shall apply in all 
31 


• 
• 
cases, disputes 01' controversies instituted by a private patty, including, but not limited to, cases filed by 
2 
entities or those claiming to have rights through such entities: 
3 
Provided, however, that, this prohibition shall not apply when the mattel' is of extremc urgency involving 
...J-
a constitutional issue, sllch that the non-issuance of a temporary restraining order will result in grave 
5 
injustice and irreparable injury to the public: 
6 
Provided, further, that, the applicant shall lile a bond, in an amount to be fixed by the Court, but in no 
7 
case shall it be less than half of the imposable fines provided for under Chapter VI, Section I ofthis Act: 
• 
8 
Provided, linally, that in the event that the court finally decides that the applicant was not entitled to the 
9 
relief applied tor, the bond shall accrue in favour of the Commission. 
10 
Any temporary restraining order, preliminary injunction or preliminary mandatory injunction issued in 
II 
violation of this section is void and of no force and etTect. Any judge who violates this section shall be 
12 
penalized by suspension of at least one (I) year without pay in addition to other criminal, civil or 
13 
administrative penalties. 
14 
The Supreme Court may designate regional trial courts to act as commissioners with the sole Illnction of 
15, 
receiving tacts of the case involving the acts of the Commission. The designated Regional Trial Court 
II 
16 
shalL within thilty (30) days from the date of receipt of the referral, forward its findings of facts to the 
17 
Supreme Court for appropriate action. 
18 
SECTION 3. I"tellectual Property Rigltts. - The implementation of the provisions of this Act shall be 
19 
without prejudice to the rights, liabilities and remedies under Republic Act No. 8293, otherwise known as 
20 
the Intellectual Propelty Code of the Philippines: Provided, that, the exercise of intellectual property 
21 
rights shall not in any way be used to justify violations of this Act. 
22 
SECTION 4. Trade Associatiolls. - Nothing contained in this Act shall be construed to prohibit the 
23 
existence and operation of trade associations organized to promote quality standards and safety issues: 
24' Provided, that, these associations shall not in ally way be used to justify any violation of this Act. 
32 


• 
• 
SECTION 5. COllgressional Oversigltt Committee. - To oversee the implementation of this Act, there 
2 
shall be el'eated a Congressional Oversight COl1ll1littee on Fail' Competition (COCFC) to be composed of 
3 
the Chairpersons of the Senate Committees on Trade and Commerce, Economic Aftairs, and Finance; the 
.j 
Chairpersons of the HOllse of Representatives Committees on Trade and Indllstry, Economic Affairs and 
5 
Approliriations; and 'two li,embers each from the Senate and the HOllse of Representatives who shall be 
6 
designated by the Senate President and the Speaker of the HOllse of Representatives: Provided, that one of 
7 
the two Senators and one of the two HOllse Members shall be nominated by the respective Minority 
8 
Leaders of the Senate and the House of Representatives. The Congressional Oversight Committee shall be 
9 
jointly chaired by the Chairpel'sons of the Senate Committee on Trade and Commerce and the House or 
10 
Representatives Committee on Trade and Industry. The Vice-Chair of the Congressional Oversight 
II 
Commillce shall be jointly held by the Chairpersons of the Senate Committee on Economic Affairs and 
12 
the I-louse of Representatives Committee on Economic AtTairs. 
13 
CHAPTER VII 
14 
FINAL PROVISIONS 
15 
SECTION 1. [mplemellling Rules IlIId Regulations. - The Commission shall prepare the necessary rules 
16 
and regulations within one hundred eighty (180) days from the organization of thc Commission: 
17 
Provided, that, where the same would apply to an industlY or a sub-sector of induslly thllt is sul~iect to the 
18 
jlll'isdiction of a regulatory agency, the Commission shall, in preparing the guidelines, consult with the 
• 
• 
19 
concerned regulatory agency and stakeholders: Provided, further, that the Commission may revise such 
20 
guidelines as it deems necessary: Provided, however. that such revised guidelines shall only take efYect 
21 
following its publication in two newspapers of general circulation. 
22· 
SECTION 2. Appropriatiolls. - The amount necessary to implement the provisions of this Act shall be 
23 
included in the annual General Appropriations Act. However, for the initial budgetary requirements of the 
24 
Commission, the amount of One Hundred Million Pesos (1'100,000,000.00) is hereby appropriated. 
25 
Provided, that all moneys rccovered or charges or composition sums collected under this Act, other than 
26 
lInaneial penalties, shall be paid into and 10rm part ofthe moneys ofthe Commission. 
33 


SECTION 3. Trlllls;IO/y Prov;s;o/l. - For the purpose of ensuring that the Commission is organized 
2 
within the mandated period or onc hundred eighty (180) days arter the approval of this Act. an lnter-
1 
Agency Task Force shall be created and composed ofthc following agencies: 
4 
(a) Agencies which will provide administrativc support to the COl11mission: 
5 
i. Office of the President. to be represented by the Executive Secretary with the Deputy 
6 
Executive Secretmy for Legal Affairs as alternate; and 
7 
ii. Department of Budget aIld Management, to be represented by the Secrctary with the 
8 
Undersecretaty in charge of organization of new offices and position c1assif,cations as 
• 
9 
alternate; 
10 
(b) Agencies which currently perform functions germane or are related to the purposes of the 
II 
Coml11 iss ion : 
12 
i. Department of Trade and Industry, to be represented by the Secretary with an onIcer 
13 
holding at least an Assistant Secretary rank as alternate; 
14 
ii. Department of Justice, to be represented by the Secretmy with an off,cer holding at 
15 
least an Assistant Secretary rank as alternate; 
. 16. 
r 
iii. Department of Transport and Communications, to be represcnted by the Secretary 
17 
with an otficer holding at least an Assistant Secretary rank as alternate: 
18 
iv. Department of Energy, to be represented by the Secretary with an officer holding at 
19 
least all Assistant'Secretary rank as alternate; and 
20 
v. Bangko Sentral ng Pilipinas, to be represented by the Governor and with a Deputy 
21 
Governor pennanently designated as alternate. 
34 
• 


• 
• 
2 
3 
The Task Force shall also meet at an Executive Session with all agency heads to deliberate on 
possible appointees for the position of Chairperson and Associate Commissioners or the 
Commission for submission to and consideration orthe President of the Philippines, 
• 
4 
The Task Foree shall also commence the coordinated advocacy for this Act within ninety (90) 
5 
days 11'0111 the effectivity thereof. It shall also implement a broad-based consultation on inputs for 
6 
the lRR of this Act which must be completed within one hundred twenty (120) days from the 
7 
elfectivity or this Act. The report consultations shall be submitted to the Commission within 
8 
tlnecn (15) days from its establishment a copy of which will be furnished to the Congrcssional 
'! 
Oversight Committee on Competition. 
10 
SECTION 4. Supple/my Applicatioll. - For purposes of this Act. the Revised Penal Code. as amended, 
I I 
and other applicable laws shall be' applied in a suppletory character. 
12 
SECTION 5. Sepal'ability Clause. - If any clause. sentence, section or part of this Act shall be adjudged 
13 
by a court of competent jurisdiction to be invalid, such judgment shall not affect, impair or invalidate the 
14 
remainder of this Act, but shall be conti ned in its operation to the clause, sentence, paragraph, section, or 
15 
part thereof directly involved in the controversy. 
16 
SECTION 6. Repealing Clause. - The following laws, insofar as they arc inconsistent with any of the 
17 
provisions or this Act are hereby repealed, amended or otherwise moditled accordingly: 
18 
(a) Sec. 5 (3) of Republic Act No. 7581 or The Price Act; 
19 • 
(b) Sec. 5 (1) of Republic AetNa. 7925 or The Public Telecommunications Policy Act; 
20 
(c) Sec. II (a) and (b) of Republic Act No. 8479 or. The Downstream Oil Industry Deregulation 
21 
Act; 
22 
(eI) Sec. 45 of Republic Act No. 9136 or The Electric Power Industry Reform Act; 
35 


(e) Sec. 13 of Republic Act No. 9295 01' The Domestic Shipping Development Act; 
1 
(J) Sec. 24 and 25 of Republic Act No. 9502 01' The Universally-Accessible Cheaper and Quality 
3 
Medicines Act. 
4 
Provided, that in case or contliet between this Act and such provisions of existing competition laws and 
5 
regulations, the provisions of this Act shall prevail. 
6 
SECTION 7. Effectivity Clause - This Act shall take eflect fifteen (15) days following its pUblication in 
7 
the Ot1lcial Gazette and in at least two (2) national newspapers of general circulation. Provided. however, 
8 
that in order to allow affected parties time to renegotiate agreement or restructure their business to comply 
9 
with the new competition law, the penal provisions under Chapter VI, Section 2 of this Act, except for 
10 
those already prohibited under the Revised Penal Code, shall be imposed one (I) year after the effectivity 
II 
of the IRR ofthis Act. 
• 
~ 
12 
Approved, 
36