PCC lauds SC ruling on search, inspection

MANILA, Philippines — The Philippine Competition Commission (PCC) expects an increase in legal proceedings against competition law offenses following the Supreme Court ruling on administrative search and inspection against entities involved in cartels and other anti-competitive agreements. 

In a statement, PCC said the rule on administrative search and inspection launched with the Supreme Court would ensure due process in the conduct of inspections against firms engaged in cartels and anti-competitive deals.

“With the Supreme Court’s rule now in place, the conduct of inspections or dawn raids is expected to significantly bolster PCC’s case-building and increase the number of prosecutions of competition law offenses in the coming years,” PCC chairman Arsenio Balisacan said. 

The rules govern the application, issuance and enforcement of an inspection order for investigations of alleged violations of the Philippine Competition Act and its implementing rules and regulations.

Applications for an inspection order would be acted upon within 24 hours. 

Inspection orders allow the PCC and its deputized agents to enter, search and inspect business premises, offices, land and vehicles to examine, copy, photograph, record or print information in order to prevent their removal, concealment, tampering with or destruction.

Dawn raids or unannounced on-site inspections are widely used by competition authorities to uncover evidence to help in the investigation and prosecution of anti-competitive agreements. 

Balisacan said the launch of the rules is timely as the PCC has been constantly receiving competition complaints from the public. 

At the same time, he said earlier inquiries have been progressing to more targeted investigations.

Earlier, he said the PCC is proposing amendments to the competition law which include the authority to conduct dawn raids without court order. 

PCC was created to promote a market where businesses compete based on the quality of their work and consumers have options. 

As part of its mandate, the body reviews mergers and acquisitions.

Last year, the PCC received 44 merger and acquisition transactions.