PCC pushes expansion of regulatory powers

MANILA, Philippines — The Philippine Competition Commission (PCC) is pushing for amendments to the country’s competition law such as higher penalties, exclusive power over competition cases, and authority to conduct dawn raids without court order.

PCC chair Arsenio Balisacan said the antitrust body intends to formally propose to Congress amendments to the Philippine Competition Act (PCA) to address issues that have emerged during its first three years of operations.

“The proposed amendments will include raising the amount of pecuniary penalties, giving PCC the power to conduct dawn raids without court order, and reinforcing its primary, original and exclusive jurisdiction over all competition cases,” he said.

Balisacan said PCC would also explore expanding its mandate to include consumer protection, citing the complementarity between competition and consumer protection work.

“The amendments will be aimed at strengthening PCC’s mandate and operations, keeping in mind that actions in its early years spell the basis for future enforcement actions,” he said.

PCC is mandated by the competition law to promote and protect a competitive market where businesses compete based on the quality of their work and consumers have options.

As part of PCC’s mandate, it reviews mergers and acquisition deals to make sure these promote consumer interest.

The law imposes penalties ranging from P50,000 to P250 million, depending on the violation.

In addition to proposing amendments to the competition law, PCC will focus its competition analysis and enforcement on the following sectors: telecommunications, retail, energy and electricity, transportation, construction, health and pharmaceuticals, and food this year.

“Our initiatives in these sectors are intended to unlock the economic potential of these industries that have long been protected by regulations,” Balisacan said.

The PCC will likewise undertake an in-depth research to support merger reviews and competition enforcement and to provide inputs for advocacy initiatives.

“These include analyses of sector regulations and market conditions, and an impact evaluation of PCC’s decisions. The commission also intends to conduct research on vertical restraints and the impact of government subsidies and subsidy-like measures on the competition landscape,” Balisacan said.

PCC also plans to formalize inter-agency ties with other sector regulators, particularly the Land Transportation Franchising and Regulatory Board, the Intellectual Property Office of the Philippines and the Department of Information and Communications Technology.

Last year, PCC received 44 merger and acquisition transactions worth P758 billion.

Of these applications, 30 were approved.

Sectors with the most transactions were manufacturing, real estate, electricity and gas, and finance and insurance.