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Powers and Functions of the Philippine Competition Commission

/ Powers and Functions of the Philippine Competition Commission

Bar Exam Notes: Competition Law 101

POWERS AND FUNCTIONS OF THE PHILIPPINE COMPETITION COMMISSION

WHAT IS THE PHILIPPINE COMPETITION COMMISSION (PCC)?

The PCC is an independent quasi-judicial government agency mandated to implement the national competition policy and enforce the PCA.  It has original and primary jurisdiction over the enforcement and implementation of the PCA and its IRR.
The OFC under the Department of Justice (DOJ-OFC) shall only conduct preliminary investigation and undertake prosecution of all criminal offenses arising under the PCA and other competition-related laws.

WHAT ARE THE POWERS AND FUNCTIONS OF THE PCC?

As the Philippines’ antitrust authority, the PCC is mandated to exercise the following powers and functions, among others:
(a) Conduct inquiry, investigate, and hear and decide on cases involving any violation of this Act and other existing competition laws:
     a. motu proprio
     b. upon receipt of a verified complaint from an interested party
     c. upon referral by the concerned regulatory agency, and institute the appropriate civil or criminal proceedings;
(b) 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;
(c) Monitor and undertake consultation with stakeholders and affected agencies for the purpose of understanding market behavior;
(d) Upon finding, based on substantial evidence, that an entity has entered into an anti-competitive agreement or has abused its dominant position after due notice and hearing, stop or redress the same, by applying remedies, such as, but not limited to, issuance of injunctions, requirement of divestment, and disgorgement of excess profits under such reasonable parameters that shall be prescribed by the rules and regulations implementing this Act;
(e) Conduct administrative proceedings, impose sanctions, fines or penalties for any noncompliance with or breach of this Act and its implementing rules and regulations (IRR) and punish for contempt;
(f) Issue subpoena  duces tecum and subpoena  ad testificandum to require the production of books, records, or other documents or data which relate to any matter relevant to the investigation and personal appearance before the Commission, summon witnesses, administer oaths, and issue interim orders such as show cause orders and cease and desist orders after due notice and hearing in accordance with the rules and regulations implementing this Act;
(g) Upon order of the court, undertake inspections of business premises and other offices, land and vehicles, as used by the entity, where it reasonably suspects that relevant books, tax records, or other documents which relate to any matter relevant to the investigation are kept, in order to prevent the removal, concealment, tampering with, or destruction of the books, records, or other documents;
(h) Issue adjustment or divestiture orders including orders for corporate reorganization or divestment in the manner and under such terms and conditions as may be prescribed in the rules and regulations implementing this Act. Adjustment or divestiture orders, which are structural remedies, should only be imposed:
(1) Where there is no equally effective behavioral remedy; or
(2) Where any equally effective behavioral remedy would be more burdensome for the enterprise concerned than the structural remedy. Changes to the structure of an enterprise as it existed before the infringement was committed would only be proportionate to the substantial risk of a lasting or repeated infringement that derives from the very structure of the enterprise;
(i) Deputize any and all enforcement agencies of the government or enlist the aid and support of any private institution, corporation, entity or association, in the implementation of its powers and functions;
(j) Monitor compliance by the person or entities concerned with the cease and desist order or consent judgment;
(k) Issue advisory opinions and guidelines on competition matters for the effective enforcement of this Act and submit annual and special reports to Congress, including proposed legislation for the regulation of commerce, trade, or industry;
(l) Monitor and analyze the practice of competition in markets that affect the Philippine economy; implement and oversee measures to promote transparency and accountability; and ensure that prohibitions and requirements of competition laws are adhered to;
(m) Conduct, publish, and disseminate studies and reports on anti-competitive conduct and agreements to inform and guide the industry and consumers;
(n) Intervene or participate in administrative and regulatory proceedings requiring consideration of the provisions of this Act that are initiated by government agencies such as the Securities and Exchange Commission, the Energy Regulatory Commission and the National Telecommunications Commission;
(o) Assist the National Economic and Development Authority, in consultation with relevant agencies and sectors, in the preparation and formulation of a national competition policy;
(p) Act as the official representative of the Philippine government in international competition matters;
(q) Promote capacity building and the sharing of best practices with other competition-related bodies;
(r) Advocate pro-competitive policies of the government by:
    (1) Reviewing economic and administrative regulations,  motu proprio or upon request, as to whether or not they adversely affect relevant market competition, and advising the concerned agencies against such regulations; and
    (2) Advising the Executive Branch on the competitive implications of government actions, policies and programs; and
(s) Charging reasonable fees to defray the administrative cost of the services rendered.
While it has original and primary jurisdiction in the enforcement and regulation of all competition-related issues, the PCC works with relevant sector regulators on matters where their expertise and knowledge on the sector are critical.

For more information, see 

PCA Chapter 2, Section 12 

and 

Chapter 7, Section 32

For a copy of the Philippine Competition Act and its Implementing Rules and Regulations, click 

here

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