Government agencies told to implement competition policies

MANILA, Philippines — The Philippine Competition Commission (PCC) welcomed President Duterte’s issuance of an administrative order directing all government agencies to implement the National Competition Policy (NCP) as this would provide a level playing field for businesses.

In a statement yesterday, the antitrust body said the issuance of Administrative Order 44 by the Office of the President for the adoption and implementation of the NCP by all government agencies is a milestone in mainstreaming competition policy.

Signed last Oct. 20, AO 44 provides that all national government agencies, government-owned or controlled corporations, and local government units need to comply with the NCP.

The NCP is contained in the National Economic and Development Authority – PCC joint Memorandum Circular 01-2020 signed in July last year.

Under the AO, government agencies need to adopt pro-competitive policies and interventions, promote a level playing field between public and private sector businesses, as well as help the PCC in enforcing the competition law.

“Mainstreaming a culture of competition requires a whole-of-government effort. While the importance of competition is mainly felt by businesses and consumers, its success requires appreciation of competition principles by leaders, regulators, policymakers and the entire bureaucracy,” PCC chairperson Arsenio Balisacan said.

The NCP serves as a framework for government agencies in their adoption and in crafting policies, rules and regulations to promote market competition and a level playing field for businesses.

It complements the Philippine Competition Act and the Philippine Development Plan 2017 to 2022.

NCP also mandates agencies to support PCC as it carries out its function to deter cartels, abuses of market dominance, and anti-competitive mergers and acquisitions.

Compliance to the NCP and its key elements will form part of the good governance conditions criteria for the grant of performance-based bonus to government personnel and the conferment of Seal of Good Local Governance on cities and municipalities.

“By ensuring that government responses and interventions follow competition principles, we can prevent policies which may exacerbate market failures and distortions. As the country tackles the economic consequences of the pandemic, the NCP is an important policy tool in improving market efficiency and stimulating economic recovery that is not only robust but also inclusive,” Balisacan said.