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REPUBLIC OF THE PIIILIPPINES 
) 
Second Regulur Session 
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S E N A T E  
/ 
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(In substitution of Senate Bill Nos. 123,1122,2544 and 3099) 
Prepared by the Sub-committee on Anti-TrustKompetition Policy (Committee on Trade and 
Commerce) with Senators Enrile, Santiago, Trillanes IV, Roxas and Angara as authors thereof 
AN ACT 
PENALIZING 
UNFAIR 
TRADE AND ANTI-COMPETITIVE 
PRACTICES IN 
RESTRAINT OF TRADE, UNFAIR COMPETITION, ABUSE OF DOMINANT POWER, 
STRENGTHENING THE POWERS OF REGULATORY AUTHORITIES AND 
APPROPRIATING FUNDS THEREFOR, AND FOR OTHER PURPOSES 
Be it enacted by the Senate and the House of Representatives of the Philippines in Congress 
assem bled: 
CHAPTER 1 
TITLE AND DEGLARATION OF POLICY 
SECTION 1. Title. - This Act shall be known and cited as the "Competition Act of 
2009. " 
SEC. 2. Declaration of Policy. - Pursuant to the constitutional mandate that the State 
shall regulate or prohibit monopolies when the public interest so requires and that no 
combinations in restraint of trade or unfair competition shall be allowed, the State shall: 
a) promote and enhance free and full competition in trade, industry and all commercial 
economic activities; 
b) prevent the concentration of economic power in a few persons who threaten to control 
the production, trade, or industry, stifle competition, distort, manipulate or constrict 
the discipline of free markets, or tamper with the free play of the market forces and 
eventually destroy free and open markets; and, 
c) penalize all forms of unfair trade, anti-competitive conduct and combinations in 
restraint of trade, with the objective of protecting and advancing consumer welfare. 


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CHAPTER 2 
SCOPE AND APPLICATION, DEFINITION OF TERMS 
SEC. 3. Scope and Application. - This Act shall be enforceable within the territory of 
the Republic of the Philippines and shall apply to all areas of trade, industry and commercial 
economic activity. It shall likewise be applicable to international trade having substantial effects 
in the Republic of the Philippines including those that result from acts done outside the Republic 
of the Philippines. 
The Act shall apply to: (a) all firms as defined hereunder and all their commercial 
agreements, actions or transactions involving goods, services or intellectual property; and, (b) all 
natural persons who, acting in their capacity as owner, manager or employee of a firm, shall 
authorize, engage or aid in the commission of restrictive practices prohibited under this Act. 
SEC. 4. Definition of Terms. -As used in this Act, the following terms shall be defined as: 
(a) Cartel shall mean a combination of firms, providing goods in relevant markets, acting or 
joined together to obtain a shared monopoly to control production, sale and price, or to 
obtain control in any particular industry or commodity, or a group of firms that agree to 
restrict trade to their mutual benefit, which may or may not be of an international scale. 
It shall also refer to firms or section of firms having common interest designed to prevent 
extreme or unfair competition and allocate markets, and to promote the exchange of 
knowledge resulting from scientific and technical research, exchange of patent rights and 
standardization of products; 
(b) Competition shall mean the process by which economic agents, acting independently in 
a market, limit each other's ability to control the prevailing conditions in the market; 
(c) Control refer to at least twenty percent (20%) ownership, directly or indirectly, of a firm 
or a group of firms by another firm; 
(d) Firm shall include any person, partnership, combination or association in any form, 
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, Birufhev, That two 
or more firms that are controlled by a single firm shall be treated as one firm; 
(e) Goods shall include all types of goods and services; 


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(f) Market shall refer to a place or venue for commercial activity, which may extend beyond 
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the borders of the Republic of the Philippines, where articles are bought or sold. It shall 
also refer to the geographical or economic extent of commercial demand; 
(g) Monopoly shall mean a privilege or undue advantage of one or more firms, consisting in 
the exclusive right to carry on a particular business or trade, and/or manufacture a 
particular product, article or object of trade, commerce or industry. It is a form of market 
structure in which one or only a few firms dominate the total sales of a product or 
service; 
(h) Monopoly Power shall refer to a situation where a firm, either by itself or acting in 
collusion with other firms, is in a.position to control a relevant market for the sale of a 
particular good or service by fixing its prices, excluding competitor firm, or controlling 
the market in a specific geographical area; and, 
(i) Relevant Market shall refer to the line of commerce in which competition has been 
restrained. It shall also refer to the geographic area involved, including all reasonably 
substitutable goods, and all nearby competitors, to which consumers could turn if the 
restraint or abuse results in the significant increase in prices. 
CHAPTER 3 
PROHIBITED ACTS 
SEC. 5. Cartels- It shall be unlawful for firms providing goods in relevant markets to 
join together to monopolize, or to control production in a particular industry or commodity, the 
sale and price of such good, and to agree to restrict trade for their mutual benefit, which may or 
may not be on an international scale. This shall also include an association by agreement of 
firms or sections of firms having common interests designed to promote the interchange of 
knowledge resulting from scientific and technical researches, exchange of patent rights and 
standardization of products. 
Restrictive agreements resulting from cartel-like behavior of firms, in any form, are 
hereby per se deemed illegal. These shall include, but not limited to, the following: 
(a) Agreements to fix selling priceof goods or other terms of sale; 
(b) Agreements to limit supply or output; 


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(c) Agreements to divide the market, whether by volume of sales or purchase or by 
territory, by type of goods sold, by customers or sellers, or by any other means; 
(d) Agreements exclude or limit dealings with particular suppliers or sellers from 
supplying or selling goods, or customers from acquiring or buying goods; and, 
(e) Agreements to fix setting price at auctions or in any other form of bidding. 
There shall be aprimafucie case for the existence of a cartel if and when the Department 
of Trade and Industry (DTI) or concerned regulatory agency finds that two or more persons or 
firms competing for the same relevant market perform uniform or complementary acts among 
themselves which tend to bring about artificial and unreasonable increase in the price of any 
goods or when they simultaneously and unreasonably increase the prices of their competing 
goods thereby lessening competition among themselves. 
SEC. 6. Monopolies. - It shall be unlawful for any firm to willfully monopolize, or 
knowingly attempt to monopolize, the trade of goods or any part of the trade or commerce within 
the Republic of the Philippines or with any foreign country or territory. As prohibited in this 
Act, the essential elements of the crime of monopolization are the possession of monopoly power 
and its willful acquisition, maintenance or abuse to exclude competitors from any part of trade, 
commerce or industry as distinguished 'from natural growth or development of a firm as a 
consequence of a superior product, business acumen or historic accident: Provided, That, a firm 
that has at least fifty percent (50%) of the relevant market as found and certified by the 
Department of Trade and Industry or the Concerned regulatory agency shall be deemed a 
monopoly or in dominant position. 
SEC. 7. Monopoly Power or Abuse of Market Power by One in Dominant Position. - It 
shall be unlawful for one or more firms with market power within relevant markets to abuse their 
monopoly power or dominant position, by engaging in unfair methods of competition, or 
engaging in unfair or deceptive trade practices, or entering into agreements, combinations in the 
form of trust or otherwise, or conspiracy, with the purpose and effect to prevent, restrict, or 
distort competition. Abusive agreements such as, but not limited to, any of the following, shall 
be deemed to fall under the crime of abuse of monopoly power or market power by one in 
dominant position: 


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A. Price Fixing - Any agreement to fix the selling price of goods or other terms of sale, 
with the purpose and effect of creating a monopoly or cartel, or lessening 
competition. 
B. Bid Rigging - Any agreement to fix price at auctions or in any other form of bidding, 
with the purpose and effect of creating a monopoly or cartel, or lessening 
competition. 
In determining whether there is price fixing or bid rigging, the following 
circumstances may be considered: 
(1) generally, any considered evidence that two sellers of similar goods have agreed to 
set the price of their goods, to sell only a certain amount of their goods, or to sell 
only to a limited number of buyers or consumers; 
(2) a drastic change in prices of goods and services involving more than one seller of 
similar goods of different brands, particularly if the changes in prices take place in 
equal amount and about the same time; 
(3) a seller refusing to sell based on an agreement with a competitor; 
(4) the same firm has repeatedly been the low bidder who has been awarded contracts for 
a certain service or a particular bidder seems to win bids on a fixed-rotation; 
(5) there is an unusual and unexplainable difference between the winning bid and all 
other bids; and, 
(6) the same bidder bids substantially higher on some bids than on others, and there is no 
logical cost reason to explain the difference. 
C. Limitation and Control of Markets -Any agreement to limit or control production, 
markets, technical development, or investment with the purpose and effect of creating 
a monopoly or cartel, or lessening competition. 
D. Market Allocation - Any agreement to divide the market, whether by volume of 
sales or purchase or by territory, by type of goods sold, by customers or sellers or by 
any other means, with the purpose and effect of creating a monopoly or cartel, or 
lessening competition. 


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E. Arrangements to Share Markets or Sources of Supply - Any agreement to share 
markets or sources of supply of raw materials, with the purpose and effect of creating 
a monopoly or cartel, or lessening competition. 
F. Price Discrimination - Any agreement prescribing or charging, directly or 
indirectly, discriminatory pricing terms or conditions in the supply or purchase of 
goods of like grade and quality with the purpose and effect of creating a monopoly or 
cartel, or substantially lessening competition: Provided, That nothing contained 
herein shall be construed to prohibit permissible price differentials unless the same 
shall have the effect of preventing, restricting or distorting competition: Provided, 
further, That for the purpose of this section, the following shall be considered 
permissible price differentials: 
(1) Socialized Pricing - Socialized pricing for the less fortunate sector of the 
economy; 
(2) Volume Discounts - Price. differentials which reflect an allowance for differences 
in the cost of manufacture, sale, or delivery resulting from differing methods or 
quantities in which the goods are sold or delivered to the purchasers; 
(3) Competitive Pricing - A price differential or other terms of sale in response to 
the competitive price of payments, services or facilities furnished by a competitor; 
(4) Bonn fide Selection of Customers - The selection of customers on bona jide 
transaction; and, 
(5) Price Differentials Due to Changing Market Conditions or Marketability of 
Goods - Price changes from time to time in response to changing conditions 
affecting the market or the marketability of the goods concerned such as, but not 
limited to, actual or imminent deterioration of perishable goods, obsolescence of 
seasonal goods, distress sides under court process, or sale on good faith in 
discontinuance of business. 
G. Exclusivity Arrangement - Any agreement imposing restrictions on the lease or 
contract for sale or trade of goods concerning where, to whom, or in what forms 
goods 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 not to deal 
with competing firms, where the purpose of such agreement is to lessen competition: 
Provided, That nothing contained herein shall prohibit or render unlawful permissible 
franchising, licensing or exclusive distributorship agreements. 
H. Tie-In Arrangements - Any agreement making the supply of particular goods 
dependent upon the purchase or lease of other goods from the supplier or his 
consignee, where the purpose and effect of such sale or lease or such condition is to 
substantially lessen competition or to create a monopoly or cartel. 
I. Boycott - Any concerted refusal to sell or conspiracy not to sell or to stop doing 
business on the part of the suppliers of any goods, unless for a legitimate purpose, 
such as but not limited to: 
(1) Defaulting Borrowers - refusal by one or more credit institutions to extend 
loans to defaulting debtors; 
Defaulting Buyers - refusal by one or more manufacturers or sellers to sell on 
credit to defaulting customers; and, 
Violators of Intellectual Property Rights -refusal by manufacturers or sellers 
to have any commercial dealings with one or more firms who violate the 
intellectual property rights of the owners of patents, copyrights, trademarks and 
other intellectual property. 
(2) 
(3) 
CHAPTER 4 
PENALTIES 
SEC. 8. Penalties. - Without prejudice to the violation of other laws, any firm that shall 
be found to have violated Sections 5, 6 and 7 of this Act, or any combination thereof, shall, for 
each and every violation, be punished by 'a fine of not less One million pesos (Php1,000,000.00) 
and not exceeding Ten million pesos (Php10,000,000.00) if a natural person; by a fine of not less 
than Ten million pesos (Php10,000,000.00) but not exceeding One hundred million pesos 
(PhplOO,OOO,OOO.OO) if a firm, and by imprisonment not exceeding ten (10) years, or both, at the 
discretion of the court. 


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CHAPTER 5 
ENFORCEMENT 
SEC. 9. Preliminary Inquiy - The Department of Justice (DOJ), in coordination with 
the Department of Trade and Industry (DTI), other regulatory and/or appropriate government 
agency, shall motupropio, upon the filing of a verified complaint by an interested party or upon 
referral by the concerned regulatory agency, initiate a preliminary inquiry for the enforcement of 
this Act based on reasonable grounds. 
SEC. 10. Powers of Concerned Regulatory Agencies. - Notwithstanding the provisions 
of the preceding section, the exercise of regulatory powers by different government agencies 
over an industry or a sub-sector of an industry shall be cumulative and shall not be construed in 
any way as derogating from the power and authority of the concerned agency. The government 
agencies shall cooperate and coordinate with one another in the exercise of their powers in order 
to prevent overlap, to share confidential information, or for other effective measures. 
SEC. 11. Power to Investigate. - The DOJ may, through its duly authorized inquiring 
officer, by written notice, require a firm or natural person to produce a specified document, or to 
provide specified information which the DOJ considers as relevant its investigation. The 
inquiring officer, upon the authority granted by the Secretary of Justice, shall engage the services 
of consultants or experts to aid in the inquiry. He shall also make use of any available or 
analogous means under existing laws and procedures to determine if any provision of this Act 
has been violated. For this purpose, he shall have the power to punish for contempt any firm 
which does not comply with the notice or order for document, information or such other relevant 
matters and to impose a fine not exceeding One hundred thousand pesos (Php100,000.00) for 
non-compliance with each notice or order. 
SEC. 12. Self-incrimination and Privileged Communication Exclusion. - Pursuant to 
the preceding section, a person subject of any investigation by the DOJ shall produce the 
specified document or information when so required by written notice: PTovided, That no person 
shall be excused from disclosing any document or information to the inquiring officer on the 
ground that the disclosure of the information or document may be incrimination: Provided, 
however, That such document or information produced by the person subject of investigation 
shall not be admissible as evidence against him in criminal proceedings: Provided, finally, That 


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such document or information shall he admissible in evidence in civil proceedings including 
those arising from or in connection to the implementation of this Act. 
Nothing in this section shall compel the disclosure of privileged communication: 
Provided, That the person who refuses to disclose the information or produce the document or 
other material required by the inquiring officer in relation to the preliminary inquiry being 
conducted shall nevertheless be obliged to give the name and address of the firm to whom, or by 
whom, or on whose behalf, such privileged communication was made. 
SEC. 13. Zmmrinizy from Suit. - Any person or firm which cooperates or furnishes any 
information, document or data to the DOJ before or during the conduct of the preliminary inquiry 
that constitutes material evidence as determined by the DOJ under this Act shall be immune from 
any suit or charge including from affected parties and third parties: Provided, further, That any 
person or firm which cooperates or furnishes information, document or data to the DOJ in 
connection to an investigation being conducted shall not be subjected to any form of reprisal or 
discrimination: Provided, furthermore, That such reprisal or discrimination shall be considered a 
violation of this Act and subjected to the penalties provided for under Section 8: Provided, 
finally, That, notwithstanding the provisions of Section 17 hereof, the firm which cooperates 
with the DOJ in its investigation shall be entitled to a reward equivalent to twenty percent (20%) 
of any monies paid by the firm subject of the inquiry, or the monetary relief recovered from court 
action. 
SEC. 14. Termination of Preliminary Ilzqmivy. - The Department of Justice, after 
considering the statements made, or documents or articles produced, in the course of an inquiry 
conducted by it, shall terminate the preliminary inquiry by issuing a resolution ordering its 
closure if no violation or infringement of. this Act is found; or by issuing a nolo contendere 
resolution; or to, singly or cumulatively, (a) endorse the findings to the regulatory agency for the 
imposition of administrative fines; (b) institute a civil case for damages; or (c) file a criminal 
case for violation of this Act or other relevant laws: Provided, That, for purposes of this Act, the 
preliminary inquiry referred to in Section 9 of this Act shall fulfill the requirements of a 
preliminary investigation: Provided, further, That the resolution shall not be subjected to any 
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petition for review. 


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SEC. 15. Nolo Contendere Resolution. - Any firm under inquiry under the provisions of 
this Act may submit to a nolo contendere resolution at any time before the termination of the 
preliminary inquiry by: a) the payment of an amount within the range of penalties provided for 
under Section 8; b) by entering into an undertaking to effectively stop and rectify the acts 
complained against, make restitution to the affected parties, whether or not the parties are 
complainants or witnesses; and, c) by submitting regular compliance reports as may be directed: 
Provided, That, five percent (5%) of the amounts paid under this section shall equitably accrue to 
the government agencies involved in the inquiry: Provided, further, That a nolo contendere 
resolution shall not bar any inquiry for the same or similar acts if continued or repeated. 
SEC. 16. Court Action. - In addition to any criminal action, the DOJ, when instituting 
the civil action, shall bring it in the name of the Republic of the Philippines, as parens patriae, 
on behalf of persons residing in the Philippines, to secure treble damages for any monetary injury 
sustained by such natural persons by reason of any violation of this Act plus the cost of suit and a 
reasonable attorney’s fee. 
SEC. 17. Eflect ofFinnlJudgmenf. -The final judgment in an action brought under the 
preceding section shall be res judicata as to any claim by any person on whose behalf such 
action was brought: Provided, That such person notifies the court having jurisdiction of the case 
within the period given by the court: Provided, further, That such period shall not be less than 
ninety (90) days. 
SEC. 18. Distribution of Monetary Relief Recovered. - The monetary relief recovered 
in a civil action under Section 15 of this Act shall be distributed in the following manner: (1) as 
determined and to be authorized by the Regional Trial Court having jurisdiction of the case; (2) 
ten percent (10%) of the total amount of monetary relief shall accrue to the DOJ to be used in the 
enforcement of this Act; and, (3) the remainder of which total amount of monetary relief shall be 
deemed a civil penalty by the Regional Trial Court and shall be deposited to the National 
Treasury as part of the general fund of the government: Provided, That any distribution 
procedure adapted by the Regional Trial Court shall afford each person having an interest in the 
monetary relief a reasonable opportunity to secure his appropriate portion of the net monetary 
relief obtained. 


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SEC. 19. Evidential Effect of a Final Judgment. - Any final judgment rendered in any 
civil or criminal action brought by the DOJ on behalf of the People of the Philippines under this 
Act to the effect that a defendant has violated any or all of the provisions of this Act shall he 
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 he 
an estoppel as between the parties concerned. 
CHAPTER 6 
OTHER PROVISIONS 
SEC. 20. Statute oflimitations. - Any civil or criminal action to enforce any cause of 
action arising from a violation of any provision of this Act shall he forever barred unless 
commenced within ten years (10) years after the cause of action accrues. The running of the 
statute of limitation shall be suspended during the pendency of any proceeding. 
SEC. 21. Zmposition of Fines by Regulatory Agency. - Notwithstanding any provisions 
of law, regulatory agencies shall, in the conduct of their functions or duties, have the power to 
impose fines in the amount not less than One hundred thousand pesos (PhplO0,OOO.OO) and not 
exceeding Five million pesos (Php5,000,000.00), if a natural person; and not less than Five 
million pesos (Php5,000,000.00) and' not 'exceeding Fifty million pesos (Php50,000,000.00) if a 
firm for each violation of or non-compliance with an order or notice of the regulatory agency. 
Ten percent (10%) of such fines shall accrue to the budget of the regulatory agency for the 
exclusive use in the enforcement of this Act. 
SEC. 22. Prohibition on the Issuance of Temporary Restraining Orders, Preliminary 
Injuncfions and Preliminary Mandatory Injunctions. - Except for the Supreme Court, no other 
court shall issue any temporary restraining order, preliminary injunction or preliminary 
mandatory injunction against the regulatory agency in the exercise of its duties or functions: 
Provided, That, this prohibition shall apply in all cases, disputes or controversies instituted by a 
private party, including, but not limited to, cases filed by regulated firms or those claiming to 
have rights through such firms: Provided, however, That, this prohibition shall not apply when 
the matter is of extreme urgency involving a constitutional issue, such that the non-issuance of a 
temporary restraining order will result in grave injustice and irreparable injury to the public: 


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Provided furfher, That, the applicant shall file a bond, in an amount to be fixed by the court, but 
in no case shall it be less than half of the imposable fines provided for under Section 21 of this 
Act: Provided, finally, That in the event that the court finally decides that the applicant was not 
entitled to the relief applied for, the bond shall accrue in favour of the regulatory agency. 
Any temporary restraining order, preliminary injunction or preliminary mandatory 
injunction issued in violation of this section is void and of no force and effect. Any judge who 
violates this section shall be penalized by suspension of at least one (I) year without pay in 
addition to other criminal, civil or administrative penalties. 
The Supreme Court may designate regional trial courts to act as commissioners with the 
sole function of receiving facts of the case involving the acts of the regulatory agency. The 
designated Regional Trial Court shall, within thirty (30) days from the date of receipt of the 
referral, forward its findings of facts to the Supreme Court for appropriate action. 
SEC. 23. Intellectual Property Rights. - The implementation of the provisions of this 
Act shall be without prejudice to the rights, liabilities and remedies under Republic Act No. 
8293, otherwise known as the Intellectual Property Code of the Philippines: Provided, That, the 
exercise of intellectual property rights shall not in any way be used to justify violations of this 
Act. 
SEC. 24. Guidelines. -- The DOJ, in consultation with the DTI, shall prepare the 
necessary guidelines for the implementation of this Act: Provided, That, where the guidelines 
would apply to an industry or a sub-sector of industry that is subject to the jurisdiction of a 
regulatory agency, the DOJ .shall, in preparing the guidelines, consult with the concerned 
regulatory agency: Provided, further, That the DOJ may revise such guidelines it deems 
necessary: Provided, however, That such revised guidelines shall only take effect following its 
publication in two newspapers of general circulation. 
SEC. 25. Separability Clause.- If any clause, sentence, section or part of this Act shall 
be adjudged by a court of competent jurisdiction to be invalid, such judgment shall not affect, 
impair or invalidate the remainder of this Act, but shall be confined in its operation to the clause, 
sentence paragraph, section, or part thereof directly involved in the controversy. 


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circulation. 
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Approved, 
SEC. 26. Repealing Clause.- All provisions of law, orders, decrees, executive orders, 
including rules and regulations or parts thereof, which are contrary to or inconsistent with the 
provisions of this Act are hereby repealed or modified accordingly. 
SEC. 27. Effectivity Clause.- This Act shall take effect fifteen (15) days following its 
publication in the Official Gazette or in at least two (2) national newspapers of general