Suarez calls for the creation of body to oversee implementation of competition act
By Charissa Luci-Atienza
Minority Leader and Quezon Rep. Danilo Suarez is seeking the creation of an oversight panel that would ensure that the Philippine Competition Act is fully implemented.
Minority Leader and Quezon Rep. Danilo Suarez
(Kj Rosales/Manila Bulletin File Photo)
He asked the Lower Chamber to convene the Congressional Oversight Committee on Competition (COCC) to oversee the implementation of Republic Act 10667, otherwise known as the “Philippine Competition Act”, which was signed into law on July 21, 2015.
He noted that Section 29 of the law allows the constitution of the COCC to oversee the implementation of the Act and the exercise of the administrative and quasi-judicial powers by the Commission.
“There is a need to oversee the implementation of the Act and its Rules in view of the scope of power granted to the Commission and the clamor from business entities in the private sector to revisit the Act and the rules of the Commission,” Suarez said.
In order to effectively carry out the provisions of the Act, the Commission issued and promulgated the Implementing Rules and Regulations of RA 10667 on May 21, 2016.
Suarez called on the House Committees on Trade and Commerce, Economic Affairs and Appropriations to lead the convening of the COCC “to oversee the implementation of the law, the Rules and to prescribe the necessary amendments to void arbitrariness in the acts and decisions of the Commission and the proper implementation of the national competition policy.”
Under RA 10667, the Commission has the power to review proposed mergers and acquisitions, determine thresholds for notification, determine the requirements and procedures for notification, and upon exercise of its powers to review, prohibit mergers and acquisitions that will substantially prevent, restrict or lessen competition in the relevant market, Suarez said.
He also explained that the Act also provides that agreements consummated in violation of the compulsory notification requirement shall be considered void and parties shall be subject to an administrative fine of one percent to five percent of the value of the transaction, the voiding of such transactions shall be upon the declaration of the Commission.
Suarez said the Commission reviewed and approved a total of 146 transactions and also voided two transactions pursuant to its powers under the Act
“Under the Commission’s current thresholds, the Commission, in 2017 alone, received 53 notifications, but only 46 turned out to be notifiable—all of which were approved after the Commission finding that such transactions do not result in substantial lessening of competition,” he said.
He said under the Commission’s current thresholds, the Commission has voided two transactions for non-notification.
“The wide latitude of the Commission’s powers under the Act has necessitated the issuance of several rules and guidelines, in addition to the Rules, resulting in ambiguity and contentious interpretation by the Commission and an undue exhaustion of the resources of the Commission and thus, the government,” Suarez said.
“Neither the Act nor the Rules provide for adequate guidelines in the exercise of the Commission’s power to declare transactions void,” he added.