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Competition Law and Policy
The Philippines should be fertile ground for a national competition law and policy. The country experienced nearly a half-century of rule under the legal and political traditions of the United States. The Philippines Constitution recognizes the “indispensable role of the private sector (and) encourages private enterprise.” It authorizes the state to regulate or prohibit monopolies when the public interest so requires, and disallows any combinations in restraint of trade or unfair competition. Yet the Philippines has neither a comprehensive law of competition nor a specialized enforcement entity.
Some Philippine laws and government entities are vested with authority to challenge trade restraints, and these laws provide remedies. There is, however, no substantive Philippine jurisprudence on competition because virtually no cases have been litigated. Litigation of cases also would be difficult because the law does not define, explain, or establish criteria for what constitutes the elements of a violation. While there are specific sectors that have made headway to open competition, there is no central government authority responsible for competition law or policy. At present, a national competition law—or an agency to enforce it—is not a high priority with the current administration or with Philippine lawmakers. Consequently, political will is insufficient to push forward one of the several existing draft competition laws pending in the Philippine House and Senate. Moreover, there is no widespread public constituency for competition law, and little public understanding of its potential benefits to consumers and new business entrants. This apparent domestic complacency contrasts with the Philippines' sensitivity about its role as a regional economic and political influence. In the ASEAN trade organization, where the common goal is a single market, the Philippines is falling behind as other member states that have adopted competition laws are developing a body of law and experience.
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