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SEVENTEENTH CONGRESS OF THE }
REPUBLIC OF THE PHILIPPINES } .
SECOND REGULAR SESSION } 18 FER 27 P2319
SENATE RECEIVE T {| ~~

S.B.No. 1711

Introduced by SENATOR JUAN MIGUEL F. ZUBIRI

AN ACT AMENDING SECTIONS 7 AND 17 OF REPUBLIC ACT NO. 10667,
OTHERWISE KNOWN AS THE PHILIPPINE COMPETITION ACT,
AND FOR OTHER PURPOSES

In July 2015, Republic Act No. 10667, otherwise known as the Philippine

Competition Act, created the Philippine Competition Commission (PCC) as. its
implementing authority to ensure that there is level playing field in the market to
benefit the consumers. Under Section 17 of said Act, the PCC can look into mergers and
acquisitions worth P1 billion and above. Parties to such mergers and acquisition are
required to first get a clearance from the PCC before consummating any agreement.

Since the enactment of Republic Act No. 10667 into law, there has been a clamor

from the business sector to review and consider the increase of the P1 billion
mandatory notification threshold, which they say could result to delays and undue
regulatory costs for companies engaged in mergers and acquisitions, and at the same
time over-burden the PCC docket with all these cases.

Although the same law authorizes the PCC to adjust and determine the

compulsory threshold, no adjustments have been made up to this time. Thus, this bill
Proposes to increase the threshold to P10 billion from its current level. There is also a
need to take into account that there have been changes in the structure of the
economy since the law was enacted. The threshold should be updated to consider all
these changes.

In view of the foregoing, the immediate passage of this bill is earnestly sought.

JIGUEL F. ZUBIRI



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SEVENTEENTH CONGRESS OF THE }
REPUBLIC OF THE PHILIPPINES }

SECOND REGULAR SESSION } 18 FEB 27 P21
SENATE ya
S.B.No. 171]

Introduced by SENATOR JUAN MIGUEL F. ZUBIRI

AN ACT AMENDING SECTIONS 7 AND 17 OF REPUBLIC ACT NO. 10667
OTHERWISE KNOWN AS THE PHILIPPINE COMPETITION ACT,
AND FOR OTHER PURPOSES

Be it enacted by the Senate and House of Representatives of the Philippines in
Congress assembled:
Section 1. Section 7 of Republic Act No. 10667 is hereby amended to read as

follows:

“Sec. 7. Term of Office. - The term of office of the Chairperson and the
Commissioners shall be [seven (7) years without reappointment. Of the
first set of appointees, the Chairperson shall hold office for seven (7)
years and of the first four (4) Commissioners, two (2) shall hold office for
a term of seven (7) years and two (2) for a term of five (5) years] CO-
TERMINUS WITH THE TENURE OF THE PRESIDENT OF THE PHILIPPINES.
In case a vacancy occurs before the expiration of the term of office, the
appointment to such vacancy shall only be for the unexpired term of the
predecessor.

“The Chairperson and the Commissioners shall [enjoy security of tenure
and] shall not be suspended or removed from office except for just cause
as provided by law.”

SEC. 2. Section 17 of Republic Act No. 10667 is hereby amended to read as
follows:

“SEC. 17. Compulsory Notification. - Parties to the merger or acquisition
agreement referred to in the preceding section wherein the value of the
transaction exceeds [one billion pesos (P1,000,000,000.00)] TEN BILLION
PESOS (P10,000,000,000.00) are prohibited from consummating their



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agreement until thirty (30) days after providing notification to the
Commission in the form and containing the information specified in the
regulations issued by the Commission: Provided, That the Commission
shall promulgate other criteria, such as increased market share in the
relevant market in excess of minimum thresholds, that may be applied
specifically to a sector, or across some or all sectors, in determining
whether parties to a merger or acquisition shall notify the Commission
under this Chapter.

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SEC. 3. Implementing Rules and Regulations. — Within sixty (60) days from the
effectivity of this Act, the Philippine Competition Commission, in consultation with
concerned sector regulators, shall promulgate the necessary implementing rules
and regulations for the implementation of this Act.

SEC. 4. Separability Clause. - In the event that any provision of this Act is
declared unconstitutional, the validity of the other provisions shall not be
affected by such declaration.

SEC. 5. Repealing Clause. - All laws, decrees, orders, rules and regulations and
other issuances or parts thereof which are inconsistent with the provisions of this
Act are hereby repealed or modified accordingly.

SEC. 6. Effectivity. - This Act shall take effect fifteen (15) days following its
Publication in the Official Gazette or in at least two (2) newspapers of general
circulation.

Approved,