SIXTEENTH CONGRESS OF THE REPUBLIC) 
OF THE PHILIPPINES 
) 
First Regular Session 
) 
SENATE 
Senate Bill No. 12 9 3 
19c1mh 
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13 AUIi 15 1\8 :40 
INTRODUCED BY SEN. JINGGOY EJERCITO ESTRADA 
EXPLANATORY NOTE 
Article XII, Section 19 of the Constitution provides that, "The State shall regulate 
or prohibit monopolies when the public interest so requires. No combinations in 
restraint of trade or unfair competition shall be allowed." 
With the local economy and industry being greatly influenced by global forces, it 
is difficult to protect the welfare of the consumers without sacrificing the interest 
of the business sector. 
Such a complex situation requires a comprehensive 
legislation that will address the different aspects of the issue. There have been 
various laws enacted to implement this constitutional provision but they run short 
of squarely and completely prohibiting and penalizing monopolies and unfair 
competition. 
' 
The "Competition Act of 2013" is a humble contribution to our country's desire for 
a more vibrant and fair economic field. This measure was submitted jOintly by 
the Committee on Trade and Commerce, Economic Affairs, and Finance during 
the Fifteenth Congress. 
It is a product of thorough discussions with all the 
stakeholders. However, it was overtaken by events and was not enacted into 
law. 
The immediate passage of this bill is earnestly sought. 
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" 
OY EJERCITO ESTRADA 
Senator 


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SIXTEENTH CONGRESS OF THE REPUBLIC) 
OF THE PHILIPPINES 
) 
First Regular Session 
) 
SENATE 
Senate Bill No. 12 9 3 
ihrlutl' 
If/ff,;. ,,! Ill' j""ttnr, 
'13 
AUG 15 A8:40 
INTRODUCED BY SEN. JINGGOY EJERCITO ESTRADA 
AN ACT 
PENALIZING ANTI-COMPETITIVE CONDUCT, ABUSE OF DOMINANCE, AND 
ANTI-COMPETITIVE MERGERS, ESTABLISHING FOR THE PURPOSE AN 
OFFICE FOR COMPETITION UNDER THE DEPARTMENT OF JUSTICE, 
APPROPRIATING FUNDS THEREFOR, AND FOR OTHER PURPOSES 
Be it enacted by the Senate and the House of Representatives of the Philippines 
in Congress assembled: 
CHAPTER I 
GENERAL PROVISIONS 
SECTION 1. Title. - This Act shall be known and cited as the "Competition Act 
of 2013". 
SEC. 2. Declaration of Policy. - P.ursuant to the constitutional mandate that the 
State shall regulate or prohibit monopolies when the public interest so requires 
and that no combinations in restraint of trade or unfair competition shall be 
allowed, the State shall: 
a. promote and enhance economic efficiency and free and fair competition in 
trade, industry, commerce and all economic activities; 
b. prevent the concentration of economic power in a few persons who 
threaten to control the production, distribution or trade to stifle competition, 
distort, manipulate or constrict the discipline of free markets, increase 
market prices; and, 
c. penalize unfair trade, anti-competitive conduct and combinations of 
restraint of trade, with the objective of protecting consumer welfare and 
advancing domestic and international trade and economic development. 
SEC. 3. 
Scope and Application. - This Act shall be enforceable within the 
territory of the Republic of the Philippines and shall apply to all areas of trade, 
industry, commerce and all economic activities. It shall likewise be applicable to 
international trade having direct, substantial and reasonably foreseeable anti-
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competitive effects in trade, industry or commerce in the Republic of the 
Philippines including those that result from acts done outside the country. 
This Act shall apply to: (a) all firms as defined hereunder and their conduct, 
agreements, actions or transactions involving goods or services; and, (b) all 
agents, 
officers, 
employees, 
partners, 
owners, 
directors, 
consultants, 
stockholders, representatives, managers, supervisors, and all other. natural 
persons who, acting on behalf of juridical persons shall authorize, engage or aid 
in the commission of restrictive practices prohibited under this Act. 
This Act shall apply neither to the combinations or activities of workers or 
employees nor to agreements or arrangements with their employers when such 
conduct, activities, or arrangements are designed solely to facilitate collective 
bargaining in respect of conditions of employment. 
This Act shall not apply to liner shipping agreements among vessel-operating 
ocean carriers, which types of agreements have operated historically in the 
Philippines foreign trades or are otherwise intended to promote efficiency, 
maintenance of service or import or export shipments, or stability in ocean 
shipping rates or services, including agreements to cooperate in the joint 
provision or sharing of liner shipping vessels and related activities, or 
agreements with respect to operational, technical, commercial, or. price matters 
for ocean, intermodal, or related services; Provided, That any agreement 
covering rate or other price matters shall not restrict an individual carrier from 
offering individual service contract terms. 
.. 
SEC. 4. Definition of Terms. - As used in this Act, the following terms shall be 
defined as: 
i. 
"Competition" shall refer to the process by which economic agents, acting 
independently in a market, limit each other's ability to control the prevailing 
conditions in the market; 
ii. 
"Conduct" shall 
refer to any agreement, 
contract, 
arrangement, 
understanding or concerted action, whether formal or informal, written or 
oral; 
iii. 
"Control of a firm" shall refer to the ability to substantially influence or 
determine the actions or decisions of a firm inclUding but not limited to at 
least fifty one percent (51%) ownership of shares in a stock entity, or in 
the position to cast at least fifty one percent (51 %) of the voting rights of a 
firm, or to designate a majority of a board of directors or equivalent 
management entity, directly or indirectly, regardless of the number of 
intermediary firms; 
iv. 
"Dominance" shall refer to having the power to act independently of 
competitors, customers, and/or consumers; 
v. 
"Firms" shall include any person, natural or juridical, partnership, 
combination or association 'in any form, whether incorporated or not, 
domestic or foreign, inclu·ding those owned and controlled by the 
government, engaged directly or indirectly in any economic activity; 
Provided, That two firms, one of which is controlled by the other, shall be 
treated as one firm; Provided further, That two or more firms that are 
controlled by a single firm shall be treated as one firm; 
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vi. 
"Goods" include all types of tangible and intangible property that could be 
2 
bought and sold, and the possession of which could be transferred in 
3 
whole or in part, temporarily or permanently; 
4 
5 
vii. 
"Services" shall refer to the provision of things of value or articles or items 
6 
that could be used by one person, whether natural or juridical, to another 
7 
through human interaction or through the use, without transfer of 
8 
ownership, of the facilities of the provider by the client, or a combination of 
9 
both. It is the non-material equivalent of a good, consumed at the point of 
10 
sale and does not result in ownership; 
11 
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viii. 
"Relevant Market" refers to the line of commerce in which competition has 
13 
been restrained and to the geographic area involved, including all 
14 
reasonable substitutable products or services, and all nearby competitors, 
15 
to which consumers could turn in the short term if the restraint or abuse 
16 
increased prices by a not Significant amount; 
17 
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ix. 
"Competitors" are buyers or sellers in the relevant market who trade or 
19 
offer to trade same, similar or substitutable goods or services or those 
20 
who plan to enter the relevant market. 
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CHAPTER II 
24 
OFFICE FOR COMPETITION' 
25 
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SEC. 5. 
Office for Competition.. '0 There shall be established an Office for 
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Competition, hereinafter to be called as the "Office". 
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For budgetary purposes, the Office shall be under the Department of Justice. In 
31 
the performance of its powers and functions, the Office shall endeavor to consult 
32 
with the Department of Trade and Industry and other regulatory and/or 
33 
appropriate government agencies to ensure effective implementation of this Act. 
34 
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SEC. 6. Powers and Functions of the Office for Competition. - The Office shall 
37 
have the following powers and functions: 
38 
39 
a. Investigate any violation of this Act motu proprio, or upon the filing of a 
40 
verified complaint by an interested party, or upon referral by the 
41 
concerned regulatory agency, or where it has reasonable grounds for 
42 
suspecting that an infringement of Sections 8, 9, 10 or 11 has occurred or 
43 
is occurring; 
44 
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b. Issue subpoena duces tecum to require the production of books, records 
46 
or other documents or data which relate to any matter relevant to the 
47 
investigation, and summon witnesses; 
48 
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c. Upon order of the court, undertake inspections of business premises and 
50 
other premises including land and vehicles, homes of firm directors, 
51 
officers and employees where 'it reasonable suspects that relevant books, 
52 
records, or other documents which relate to any matter relevant to the 
53 
investigation are kept; Provided, That such order may be granted ex parte 
54 
to prevent the removal, concealment, tampering with or destruction of the 
55 
books, records or other documents; 
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d. Question any firm director, officer or employee in connection with any 
matter relevant to the irivestigation; 
e. Conduct administrative proceedings as provided for under this Act; 
f. Obtain interim measures by way of court order in order to stop a firm or 
firms from continuing to engage in certain conduct and practices pending 
investigation; 
g. Issue a show cause order against any person conducting 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; 
h. Issue cease and desist orders ex parte or de parte depending on the 
gravity of the injury .and availability of immediate reliefs; 
i. 
Conduct preliminary inquiry; 
j. Approve, modify or disapprove proposals for consent order; 
k. 
Institute civil or criminal proceedings; 
I. 
Deputize any government agency to provide information and lend in the 
discharge of its responsibilities under this Act and require submission or 
examine records and documents in the possession or control of such 
government agency; 
, ... 
m. Monitor compliance by the person or firms concerned with the cease and 
desist order or consent judgment; 
n. 
Gather and compile information and investigate from time to time, the way 
a given industry, domestic or foreign, is structured or organized; the way 
the firms within that industry act, behave, or conduct themselves in such 
matters as setting prices, determining output, and the resulting 
performance of the industry as a whole; the organization, business, 
conduct, practie,es and management of any person or firm, or engaged in 
trade, commerce, or industry and its relation to other persons or firms; 
o. Require, by general or special orders, firms engaged in commerce, trade, 
commerce, or industry to file such form as may be prescribed, annual or 
special reports, or answers in writIng to specific questions, furnishing such 
information as it may require as to the organization, business, conduct, 
practices, management and relation to other persons or the firms filing 
such reports or answers in writing; 
p. Make public, from time to time, such portions of the information obtained 
by it under this Act as it shall deem expedient in the public interest; 
q. To develop programs on the pernicious effects of anti-competitive 
conduct, the methods and techniques used in such practices, the 
detection of such schemes, the promotion of consumer welfare and the 
effective ways of prosecuting and punishing violators; and, 
r. Submit annual and special reports to Congress, including proposed 
legislation for the regulation of commerce, trade or industry, and provide 
for the publication of its reports and resolutions. 
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SEC. 7. 
Powers of Concerned Regulatory Agencies. -
The exercise of 
2 
enforcement and regulatory powers by the Office shall be cumulative to the 
3 
power and authority of the different government agencies over an industry or a 
4 
sector of an industry and shall not in any way derogate the power and authority 
5 
of the concerned agency. The Office shall enlist the assistance of any branch, 
6 
department, bureau, office, agency or instrumentality of the government in 
7 
undertaking any and all mandated functions under this Act, which may include 
8 
the use of its personnel, facilities and resources for the more resolute prevention 
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of anti-competition conduct, detection of such violations and prosecution of 
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offenders. 
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CHAPTER III 
14 
PROHIBITED ACTS 
15 
16 
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SEC. 8. Anti-Competitive Conduct. - It shall be unlawful for firms to engage in 
18 
any conduct with the object or effect of unreasonably preventing, restricting or 
19 
lessening substantially competition including but not limited to: 
20 
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a. Any conduct to directly or indirectly fix, control or maintain prices; 
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b. Any conduct to set, limit or control production, markets, technical 
24 
development, or investment;' 
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c. Any conduct to divide or share the market, whether by volume of sales or 
27 
purchases, territory, type, of goods or services, buyers or sellers or any 
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other means; 
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d. Any conduct to fix price at an auction or in any form of bidding including 
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cover bidding, bid suppression, bid rotation and market allocation and 
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other analogous practices of bid manipulation; 
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e. Any conduct to apply dissimilar conditions to equivalent transactions with 
35 
other parties, thereby placing them at a competitive disadvantage. 
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Provided, That any such agreement which contributes to improving the 
38 
production or distribution of goods and services or to promoting technical or 
39 
economic progress, while allowing consumers a fair share of the resulting 
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benefits, shall not be deemed a violation of this Act. 
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.SEC. 9. Abuse of Dominance. - It shall be unlawful for one or more firms to 
44 
abuse their dominance by engaging in unfair competition with the object or effect 
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or preventing, restricting, or lessening competition including but not limited to: 
46 
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a. Selling goods or services below cost; Provided, That the following shall be 
48 
permissible: 
49 
i. 
for clearance, inventory or sale purposes; 
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ii. 
as a reaction to a 'competitor lowering its price or as a reaction to 
52 
market forces; 
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iii. 
in such other instances determined by the Office for Competition in 
55 
consultation with the Department of Trade and Industry (DTI); 
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b. Imposing barriers to entry; 
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c, Setting prices or other terms or conditions that differ or discriminate 
3 
between their customers or sellers; Provided, That the following shall be 
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considered permissible price differentials: 
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i. 
Socialized pricing for the less fortunate sector of the economy; 
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ii. 
Price differentials which reflect an allowance for differences in the 
9 
cost of manufacture, sale or delivery resulting from differing 
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methods or quantities in which the goods or services are sold or 
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delivered to the buyers or sellers; 
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iii. 
Price differential or terms of sale in response to the competitive 
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price of payments, services or facilities furnished by a competitor; 
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iv. 
Price changes in response to changing market conditions or 
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marketability of goods or services. 
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d. Imposing restrictions on the lease or contract for sale or trade of goods or 
20 
services concerning where, to whom, or in what forms goods or services 
21 
may be sold or traded, such as, but not limited to, fixing prices, or giving 
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preferential discounts, or rebate upon such price, or imposing conditions 
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not to deal with competing firms, where the object or effect of such 
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restrictions is to prevent, restrict or lessen competition; Provided, That 
25 
nothing contained herein shall prohibit or render unlawful permissible 
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franchising, 
licensing, 
exclusive 
distributorship 
or 
merchandising 
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agreements; 
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e. Making the supply of particular goods or services dependent upon the 
30 
purchase of other goods or services from the supplier; 
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f. Any unjustified refusal to sell or conspiracy not to sell or to stop doing 
33 
business on the part of the supplier of any goods or services. 
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There shall be a rebuttable presumption of dominance ·if a firm controls at least 
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forty percent (40%) of the market. 
If market shares are not available to the 
37 
Office, the structure of the market, degree of integration, technological and 
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financial advantages and other relevant factors shall be considered in 
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determining control of the market. 
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SEC. 10. Anti-Competitive Mergers. - No firm engaged in commerce, trade or 
43 
industry shall acquire, directly or indirectly, the whole or any part of the stock or 
44 
other share capital, assets or voting rights of one or more firms engaged in any 
45 
commerce, trade or industry where the object or effect of such conduct is to 
46 
prevent, restrict or substantially lessen competition. 
47 
48 
In the case of merger of banks' or banking institutions, building and loan 
49 
associations, trust companies, insurance companies, public utilities, educational 
50 
institutions and other special corporations governed by special laws, the 
51 
favorable recommendation of the appropriate government agency shall first be 
52 
obtained. 
53 
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SEC. 11. 
Criminal Offense. - A person commits an offense when he or it 
56 
engages in any conduct with another person: 
57 
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a. to fix, maintain, increase or control the price for the supply of goods or 
2 
services; 
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b. to allocate sales, territories, customers or markets for the production or 
5 
supply of goods or services; or 
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c. to fix, maintain, control, prevent, lessen or eliminate the production or 
8 
supply of goods or services. 
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A person thOlt ShOlIi be found to hOlve violated this Section, ShOlIl, for each and 
11 
every violation, be punished by a fine up to ten percent (10%) of the person's 
12 
gross revenue for the immediately preceding fiscal year; Provided, That to be 
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convicted, the anti-competitiVe conduct must be proved beyond reasonable 
14 
doubt. 
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CHAPTER IV 
18 
ENFORCEMENT 
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SEC. 12. Preliminary Inquiry. - The Office shall motu proprio, or upon the filing 
22 
of a verified complaint by an interested party or upon referral by the concerned 
23 
regulatory agency, initiate a preliminary inquiry for the enforcement of this Act. 
24 
25 
No criminal or civil case for violation of this Act shall be filed or instituted by a 
26 
private party directly in court, unless there has been a preliminary inquiry 
27 
conducted by the Office and the ,s8n;1e has been endorsed for filing by the Office. 
28 
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SEC. 13. Power to Investigate and Enforce Orders and Resolutions. - The 
31 
Office shall conduct preliminary inquiries by administering oaths, issuing 
32 
subpoena duces tecum and summoning witnesses, and commissioning 
33 
conSUltants or experts. It shall determine if any provision of this Act has been 
34 
violated, enforce its orders and carry out its resolutions by making use of any 
35 
available means, provisional or otherwise, under existing laws and procedures 
36 
including the power to punish for contempt and to impose fines. 
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SEC. 14. Self-inCrimination. - A person subject of any preliminary inquiry or 
40 
investigation by the Office shall produce the specified document or information 
41 
when so required by written notice subject only to the limitations provided for in 
42 
Article III, Section 17 of the 1987 Philippine Constitution. 
43 
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SEC. 15. 
Confidentiality of Information. -
Any document or information 
46 
submitted by firms, as determined and marked confidential by the Office, relevant 
47 
to any investigation being conducted pursuant to this Act shall not, in any 
48 
manner, be directly or indirectly disclosed, published, transferred, copied, or 
49 
disseminated. The identity of persons who provide information to the Office and 
50 
who need confidentiality to protect themselves against economic retaliation, and 
51 
any deliberations in regard to'" current or pending matters shall remain 
52 
confidential. 
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Any person who violates this provision shall be punished by a fine of not less 
54 
than One hundred thousand pesos (Php 100,000.00) but not more than Five 
55 
hundred thousand pesos (Php500,000.00). 
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SEC. 16. Immunity from Suit; Leniency program. - Any person or firm which 
2 
cooperates or furnishes any information, document or data to the Office before or 
3 
during the conduct of the preliminary inquiry that constitutes material evidence 
4 
under this Act shall be immune from any suit or charge including from affected 
5 
parties and third parties; Provided, That the person or firm is not the most guilty; 
6 
Provided, further, That any person or firm which cooperates' or furnishes 
7 
information, document or data to the Office in connection with an investigation 
8 
being conducted shall not be subjected to any form of reprisal or discrimination; 
9 
Provided, furthermore, That such reprisal or discrimination shall be considered a 
10 
violation of this Act and subjected to the penalties provided for under Section 16 
11 
of this Act; Provided, finally, That the Office shall promulgate a leniency program 
12 
in accordance with this Section. 
13 
14 
Nothing in this section shall preclude prosecution for persons and firms who 
15 
report to the Office false, misleading or malicious information, data or documents 
16 
damaging to the business or integrity of the persons or firms under inquiry. Such 
17 
act shall be considered as a violation of this Act and subject to the penalties 
18 
provided in relevant sections. 
19 
20 
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SEC. 17. Consent Order. - Any firm under inquiry may submit a proposal for a 
22 
consent order at any time before the termination of the preliminary inquiry with: a) 
23 
the payment of an amount within the range of fines provided for under Section 
24 
19; b) by entering into an undertaking to effectively stop and rectify the acts 
25 
complained of, make restitution to the affected parties, whether or not the parties 
26 
,are plaintiffs or witnesses; ,and,c) submitting regular compliance reports as may 
27 
be directed.' 
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Nothing in this section shall preclude prosecution for persons and firms who 
30 
reported to the Office with malicious' information, d'ata 'and falsified documents 
31 
which are damaging to the business and integrity of the persons and firms under 
32 
inquiry. 
Such act shall likewise be considered as an unfair trade practice 
33 
punishable under this Act. 
34 
35 
36 
SEC. 18. 
Termination and Action on Preliminary Inquiry. - The Office, after 
37 
considering the statements made, or documents or articles produced, in the 
38 
course of an inquiry conducted by it, shall terminate the preliminary inquiry by 
39 
issuing a resolution ordering its closure if no violation or infringement of this Act 
40 
is found; or by issuing a consent order resolution; or issuing a resolution to, 
41 
singly or cumulatively: (a) impose penalties in the range provided under this Act; 
42 
(b) order the rectification of certain acts or omissions; or (c) order the restitution 
43 
of the affected parties. 
44 
45 
When determined by the facts and circumstances, the Office shall institute a civil 
46 
action by class suit in the name of the Republic of the Philippines, as parens 
47 
patriae, on behalf of persons residing in the Philippines, to secure treble 
48 
damages for any injury sustained by such persons by reason of any violation of 
49 
this Act, plus the cost of suit and reasonable attorney's fees. 
50 
51 
If the evidence so warrants, the Office shall file criminal cases for violation of this 
52 
Act or relevant laws before the Department of Justice. 
53 
54 
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SEC. 19. Non-Adversarial Administrative Remedies. - The Office shall, under 
56 
such rules and regulations it may prescribe, encourage voluntary compliance 
57 
with this Act and other competition laws by making available to the parties 
8 


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1 
concerned the following and other analogous non-adversarial and non-
2 
adjudicatory administrative remedies, before the institution of administrative, civil 
3 
or criminal action: 
4 
5 
a. Request for Binding Ruling. - Any person who is in doubt as to whether 
6 
the contemplated or existing act, course of conduct, agreement, decision 
7 
or practice is in compli,ance with, .is exempt f(om, or in violation of any of 
8 
the provisions of this Act, other competition laws, or implementing rules 
9 
and regulations thereof, may request the Office, in writing, to render a 
10 
binding ruling thereon; 
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12 
b. Show Cause Order. - Upon preliminary findings motu proprio or on written 
13 
complaint under oath by an interested party, that any person is conducting 
14 
his business, in whole or in part in a manner that may not be in accord 
15 
with the provisions of this Act or other competition laws, and it finds that 
16 
the issuance of a show cause order would be in the interest of the public, 
17 
the Office shall issue and serve upon such person or persons a written 
18 
description of its business conduct complained of, a statement of the facts, 
19 
data, and information together with a summary of the evidence thereof, 
20 
with an order requiring the said person or persons to show cause, within 
21 
the period therein fixed, why no order shall issue requiring such person or 
22 
persons to cease and desist from continuing with ties identified business 
23 
conduct, or pay the administrative fihe therein specified, or readjust its 
24 
business conduct or practices; 
25 
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c. Proposal for Consent Judgment. - At any time prior to the issuance of a 
27 
binding ruling, the promulgation of a cease and desist judgment under a 
28 
show cause order or the promUlgation of a decision of judgment in any 
29 
administrative, civil, or criminal case, the person or persons, whose 
30 
business conduct is under inquiry in the particular proceedings may, 
31 
without in any manner admitting a violation of this Act or any other 
32 
competition laws, submit to the Office a written proposal for the entry of a 
33 
consent judgment, specifying therein the terms and conditions of the 
34 
proposed consent judgment; 
35 
36 
d. Consultations. - Prior to the fitting of a request for a binding ruling or the 
37 
submission of a proposal for consent judgment, the person or persons 
38 
concerned may communicate, in writing, with the Office on matters that 
39 
should be included or excluded in such request or proposal, which the 
40 
Office may consider necessary for the effective enforcement of this Act or 
41 
other competition laws; 
42 
43 
e. Binding Ruling, Cease and Desist Order, and Consent Judgment. - Based 
44 
upon the facts, data, and information disclosed or supplied by the persons 
45 
concerned, or established by SUbstantial evidence during the hearing, the 
46 
Office shall issue a binding rUling"a cease and desist order or an approval 
47 
of the proposal for a consent judgment, as the case may be, with or 
48 
without conditions, to the effect that the particular act, course of conduct, 
49 
agreement, decision or practice is in accord with this Act or other 
50 
competition laws, or is exempt therefrom, or constitutes a violation thereof. 
51 
If the Office finds that there'"is' SUbstantial evidence tending to show that 
52 
the act, course of conduct, agreement, decision or practice of the person 
53 
or persons concerned is prohibited, it shall include in its decision the 
54 
appropriate order requiring the person or persons concerned to perform 
55 
certain acts: 
56 
9 


I 
i. 
Cease and Desist Order. - To cease and desist from continuing 
2 
with the identified act, course of conduct, agreement, decision, or 
3 
practice found to be in violation of the provisions of this Act; 
4 
5 
ii. 
Administrative Penalty or Fine. - To pay the fine therein fixed; 
6 
7 
f. 
Monitoring of Compliance. - The Office shall monitor the compliance by 
8 
the person or persons concerned, their officers and employees, with the 
9 
final and executory binding ruling, cease and desist order, or approval of a 
10 
consent judgment. Upon motion of an interested party, the Office shall 
II 
issue a certification to the effect that the person or persons concerned 
12 
have, or have not, as the case may be, complied with a final and 
13 
executory ruling, order or approval; 
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g. Inadmissibility in Evidence. - The request for a binding ruling, the show 
16 
cause order, or the proposal for consent judgment; the facts, data, and 
17 
information therein contained or subsequently supplied by the person or 
18 
persons concerned; the admissions, oral or written, made by them against 
19 
their interest; all other documents filed by them including their evidence 
20 
presented in the proceedings before the Office; and the judgment 
21 
rendered thereon, shall not be admissible as evidence in any 
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administrative, civil or criminal proceedings against such person or 
23 
persons, their officers, employees, and agents nor constitute a basis for 
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the introduction of the' binding· ruling, the cease and desist order, or the 
25 
consent judgment as prima facie evidence against such persons in any 
26 
such .action or proceeding; 
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h. Modification or Reversalo(Ruling, Order or Approval. - The Office may 
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motu proprio or upon petition of an interested party, after notice and 
30 
hearing, reopen and alter, 'modify, or set aside, in whole or in part, a 
31 
binding ruling, a cease and desist order, or an approved consent 
32 
judgment: 
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i. 
Whenever conditions of material fact or law have so changed as to 
35 
require such action; 
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ii. 
When the concerned person or persons fail or refuse, without 
38 
justifiable cause therefore, to comply with any condition attached to 
39 
such ruling, order or,approval, including an order to readjust their 
40 
method of doing business; or 
41 
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iii. 
When the ruling, order or approval was based on deliberately 
43 
falsified material fact, data or information supplied by an interested 
44 
party benefited by such ruling, order or approval. 
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The modification or reversal of a binding ruling, a cease and desist order, or an 
47 
approved consent judgment shall have no retroactive effect and shall not affect 
48 
or impair any right legally acquired prior to the modification or reversal thereof, 
49 
except, that the party who is guilty of unjustified failure or refusal to comply as 
50 
specified in paragraph (2) hereof, or have deliberately supplied such falsified 
51 
material fact, data or information as specified in paragraph (3) above, is barred 
52 
from claiming any vested right therein. 
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SEC. 20. Standards. - In the exercise of its powers or in the discharge of its 
56 
duties under this Act, the Office shall consider the following: 
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a. The way a given industry is structured or organized whether monopolistic, 
oligopolistic, or competitive; 
b. The ways the persons engaged in business within a given industry act, 
behave or conduct themselves in such matters as setting prices, 
determining output, and other relevant factors and the resulting 
performance of the industry as a whole; 
c. The supply and demand situation for the relevant goods or services; 
d. The appreciable impact of the particular market conduct on market 
conditions, if any; 
e. The need to bring together complimentary skills to avoid duplication and 
promote efficiency in the industry; 
f. The need to determine whether or not the anticompetitive effect of a 
particular market conduct may be offset by increased efficiency and 
reduction of excessive or unnecessary expenses; 
g. The cost and profit levels of the industry; 
h. The need to increase productivity in the particular industry involved; 
i. 
The state of the industry, including the need to develop it or to save it from 
its distressed state; 
. ~ , 
j. The need of the industry to work more rationally and increase their 
productivity and competitiveness on a larger market; 
k. The need to respond to international competition and other developments 
in the international market; 
I. 
The need to encourage or develop small and medium-sized industries; 
m. The impact of the market conduct on the economy and on the consuming 
public, particularly low-income groups; 
n. The need to pool capital resources; 
o. The extent to which the cons'umers have a possibility of choice of the 
product or service involved; 
p. The economic and financial power of the parties concerned; 
q. The attainment of the objectives which are given priority interest in the 
general interest of the country, including the need for accelerated 
industrialization; and, 
r. The extent to which less restrictive practices are available. 
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CHAPTER V 
2 
FINES, PENALTIES AND DECISION 
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SEC. 21. Administrative Penalties. -
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a. Without prejudice to the violation of other laws, any firm that shall be found 
8 
to have violated Sections 8, 9, 10 and 110f this Act, or any combination 
9 
thereof, shall, for each and every violation, be punished by a fine of not 
10 
less than Ten million pesos (P10,OOO,OOO.OO) and not exceeding Fifty 
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million pesos (P50,OOO,OOO.OO) if a natural person; by a fine of not less 
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than Two hundred fifty million pesos (P250,OOO,OOO.OO) but not exceeding 
13 
Seven hundred fifty million pesos (P750,OOO,OOO.OO) if a firm, at the 
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discretion of the Office. 
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b. 
In addition, a fine shall be imposed in an amount double the gross 
17 
proceeds gained by the violatorls or double the gross loss suffered by the 
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plaintiffs. 
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c. Failure to Comply With an Order of the Office. - Any person who fails or 
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neglects to comply with any term or condition of a binding ruling, a cease 
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and desist order or an order for readjustment issued by the Office, shall 
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pay a fine of not less than Fifty thousand pesos (P50,OOO.OO) for each 
24 
violation. Each violation shall be deemed a separate offense. 
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d. Supply of Incorrect or Misleading Information. - The Office may likewise 
27 
impose upon persons or el1tities fines of not less than Five thousand 
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pesos (P5,OOO.OO) to not more than One hundred thousand pesos 
29 
(P100,OOO.OO) where, intentionally or negligently, they supply incorrect or 
30 
misleading information in any document, application or other paper filed 
31 
with or submitted to the Office or supply incorrect or misleading 
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information in an application or other paper filed with or submitted to the 
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Office or supply incorrect or misleading information in an application for a 
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binding ruling, a proposal for a consent judgment, proceedings relating to 
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a show cause order, or application for modification of the Offic.e's ruling, 
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order or approval, as the case may be. 
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For purposes of determining the persons who will suffer the punishment of 
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imprisonment as provided under the preceding paragraph, provisions of the 
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Revised Penal Code, Title II, Articles 16, 17, 18 and 19 on criminal liability of 
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principals, accomplices, and accessories shall apply. 
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SEC. 22. Contempt. - To effectively implement the provisions of this Act, the 
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Office may summarily punish for contempt by a fine not exceeding One hundred 
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thousand pesos (Php100,OOO.OO), any person guilty of such misconduct in its 
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presence or in its vicinity as to seriously interrupt any hearing, session or any 
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proceedings before it, including cases in which a person willfully fails or refuses, 
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without just cause; to comply with a summons, subpoena or subpoena duces 
50 
tecum; being present at a hearing, proceeding, session or investigation, refused 
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to be sworn as a witness or to answer questions or to furnish information when 
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lawfully required to do so. 
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SEC. 23. Violation by Corporation, Partnership, Association, or Other Entity. -
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Whenever a corporation, partnership, association, firm or other entity, whether 
57 
domestic or foreign, shall commit any of the violations under this Act, the 
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chairman of the board of directors, executive officers of the firm, the general 
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partners of a partnership and employees directly responsible, shall be jointly and 
3 
severally liable with the firm for any sanction or fines imposed under this Act. 
4 
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Should the offense be committed by a foreign corporation licensed to do 
6 
business in the Philippines, the person or persons directly responsible in the 
7 
Philippines for its management and operation shall be liable. In addition, the 
8 
Office may apply before the court for its license to do business in the Philippines 
9 
to be cancelled. 
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It shall not be a defense for the persons directly responsible for the violation to 
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claim lack of knowledge or being unaware of the violation unless it can be 
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established that even with the exercise of due diligence and proper supervision, 
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the violation could not have been avoided or prevented. 
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Any agreement between the officer or employee with the firm for the latter to 
17 
directly or indirectly assume, satisfy or indemnify, in whole or in part, the fine or 
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penalty imposed under this Act against such officer or employee shall be void. 
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SEC. 24. Alien Violators. - A foreigner who violates any provision of this Act 
22 
shall, in addition to the other imposable penalties, be deported after service of 
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sentence without need of further proceedings. 
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SEC. 25. Effect of Final Judgment. - Any final judgment in a civil or criminal 
27 
action brought by or on behalf of the People of the Philippines under this Act to 
28 
the effect that a defendant has violated any or all of the provisions of this Act 
29 
shall be res judicata as to any claim by any person on whose behalf such action 
30 
was brought; Provided, That such person notifies the court having jurisdiction of 
31 
the case within the period given by the court; Provided, further, That such period 
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shall not be less than ninety (90) days. 
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It shall be prima facie evidence against such defendant in any civil action brought 
35 
by any other party against 'Such defendant under this Act as to- all matters 
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respecting which said judgment would be an estoppel as between the parties 
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concerned. 
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SEC. 26. 
Decisions of the Office for Competition. -
Decisions, awards, 
41 
resolutions and orders of the Office shall become final after the lapse of fifteen 
42 
(15) days from receipt of a copy thereof by the parties, unless a motion for 
43 
reconsideration is filed within such period. 
Only one (1) motion for 
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reconsideration by anyone party shall be allowed and entertained except in 
45 
highly meritorious cases. 
Decisions or final orders of the Office shall be 
46 
appealable to the Court of Appeals. 
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SEC. 27. 
Private Action. -
Regardless of the status or pendency of any 
50 
proceedings, any person or firm that suffers injury by reason of any violation of 
51 
this Act may institute a separate' independent civil action, irrespective of the 
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amount involved in the controversy against the defendants and shall recover 
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treble damages sustained, the costs of suit and attorney's fees equivalent to 
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Twenty percent (20%) of the award; Provided, however, That no filing fees shall 
55 
be collected; Provided, further, That filing fees shall constitute a first lien in the 
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award of damages. 
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SEC. 28. Measurement of Damages. - Damages may be proved and assessed 
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in the aggregate by statistical or sampling methods, by the computation of illegal 
4 
overcharges, or by such other reasonable system of estimating total damages 
5 
without the necessity of separately proving the individual claim of, or amount of 
6 
damage to, persons on whose behalf the suit was bought. 
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CHAPTER VI 
10 
OTHER PROVISIONS 
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SEC. 29. Statute of Limitations. - Any civil or criminal action to enforce any 
14 
cause of action arising from a violation of any provision of this Act shall be 
15 
forever barred unless commenced within five (5) years after the cause of action 
16 
accrues. The running of the statute of limitation shall be suspended during the 
17 
pendency of any proceeding. 
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The cause of action begins to run when the plaintiff suffers injury to its business 
20 
or property; Provided, That when the damage suffered by the plaintiff is too 
21 
specuiative to prove, the cause of action does not accrue until the damage 
22 
becomes probable; Provided, however, That if the plaintiff's injury is the result of 
23 
the continuing violations of this Act, each independent anti-competitive act may 
24 
restart the limitation period or when a plaintiff reasonably fails to uncover a cause 
25 
or action that was fraudulently concealed by a defendant. 
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. _ II _ 
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SEC. 30. 
Prohibition on the Issuance -of Temporary Restraining Orders, 
29 
Preliminary Injunctions and Preliminary Mandatory Injunctions. - Except for the 
30 
Supreme Court, no other court shall issue any temporary restraining order, 
31 
preliminary injunction or preliminary mandatory injunction against the regulatory 
32 
agency in the exercise of its duties or functions; Provided, That, this prohibition 
33 
shall apply in all cases, disputes or controversies instituted by a private party, 
34 
including, but not limited to, cases filed by regulated firms or those claiming to 
35 
have rights through such firms; Provided, however, That, this prohibition shall not 
36 
apply when the matter is of extreme urgency involving a constitutional issue, 
37 
such that the non-issuance of a temporary restraining order will result in grave 
38 
injustice and irreparable injury to the public; Provided, further, That, the applicant 
39 
shall file a bond, in an amount to be fixed by the Court, but in no case shall it be 
40 
less than half of the imposable fines provided for under this Act; Provided, finally, 
41 
That in the event that the court finally decides that the applicant was not entitled 
42 
to the relief applied for, the bond shall accrue in favor of the regulatory agency. 
43 
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Any temporary restraining order, preliminary injunction or preliminary mandatory 
45 
injunction issued in violation of this Section is void and of no force and effect. 
46 
Any judge who violates this Section shall be penalized by suspension of at least 
47 
one (1) year without pay in addition to other administrative, civil or criminal 
48 
penalties. 
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SEC. 31. Intellectual Property Rights. - The implementation of the provisions of 
52 
this Act shall be without prejudice t6 tlie rights, liabilities and remedies under 
53 
Republic Act No. 8293, otherwise known as the Intellectual Property Code of the 
54 
Philippines; Provided, That, the exercise of intellectual property rights shall not in 
55 
any way be used to justify violations of this Act. 
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SEC. 32. Trade Associations. - Trade associations are expressly covered by 
this Act; Provided, That trade associations can be organized to promote quality 
standards and safety issues and advocate positions on issues that are mutually 
relevant to its members. 
SEC. 33. 
Implementing Rules and Regulations. -
Implementing rules and 
regulations shall be issued within one hundred eighty (180) days from the 
effectivity of the Act in consultation with the Department of Trade and Industry 
and concerned regulatory agencies and stakeholders; Provided, That the Office 
shall promulgate guidelines to give further effect to this Act; Provided, further, 
That the implementing rules and regulations may be revised as necessary; 
Provided however, That such guidelines and revised rules and regulations shall 
only take effect following its publication in two (2) newspapers of general 
circulation or posting on the official website. 
SEC. 34. Appropriations. - The amount necessary to implement the provisions 
of this Act shall be included in the annual General Appropriations Act. However, 
for its initial budgetary requirements, the amount of One Hundred Million Pesos 
(P 100,000,000.00) is hereby appropriated from whatever savings or sources 
available. 
SEC. 35. Separability Clause. - If any clause, sentence, section or part of this 
Act shall be adjudged by a court of competent jurisdiction to be invalid, such 
judgment shall not affect, impair o~. invalidate the remainder of this Act, but shall 
be confined in its operation to the Clause, sentence, paragraph, section, or part 
thereof directly involved in thE\ controversy. 
SEC. 36. Suppletory Application. - For purposes of this Act, the Revised Penal 
Code, as amended, and other applicable laws shall be applied in a suppletory 
character. 
SEC. 37. 
Repealing Clause. -
The following laws, insofar as they are 
inconsistent with any of the provisions of this Act are hereby repealed, amended 
or otherwise modified accordingly: 
a. Sec. 5 (3) of Republic Act No. 7581 or The Price Act; 
b. Sec. 5 (f) of Republic Act No. 7925 or The Public Telecommunications 
Policy Act; 
c. Sec. 11 (a) and (b) of Republic Act No. 8479 or The Downstream Oil 
Industry Deregulation Act; 
d. Sec. 45 of Republic Act No. 9136 or The Electric Power Industry Reform 
Act; 
e. Sec. 13 of Republic Act No. 9295 or The Domestic Shipping Development 
Act; 
f. 
Sec. 24 and 25 of Republic Act No. 9502 or The Universally-Accessible 
Cheaper and Quality Medicines Act. 
15 


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Provided, That in case of conflict between this Act and provisions of existing 
2 
competition laws and regulations, the provisions of this Act shall prevail. 
3 
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SEC. 38. 
Effectivity Clause. -
This Act shall take effect fifteen (15) days 
6 
following its complete publication in the Official Gazette or in at least two (2) 
7 
national newspapers of general circulation; Provided, however, to allow affected 
8 
parties to renegotiate agreements or restructure their business to comply with the 
9 
provisions of the Act, its full implementation will begin six (6) months from 
10 
issuance ofthe Implementing Rules and Regulations. 
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Approved, 
I ... 
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