Fair Competition Act

3 out of 6 Major Bills in 2015 c/o Bam

Sen. Bam Aquino, the youngest senator of the 16th Congress, made an impact during the second regular session as he sponsored three out of the six major measures ratified during the period.

Foremost of Sen. Aquino’s bills was the Philippine Competition Act, a landmark measure seeking to level the playing field for all business, and eliminate anti-competitive agreements and abuses of dominant players in the market.

The Philippine Competition Act was finally passed under Sen. Bam’s watch as chairman of the Senate Committee on Trade, Commerce and Entrepreneurship after 25 years of gathering dust in the legislative mill.

Sen. Bam also co-authored and sponsored the Foreign Ships Co-Loading Act and the Youth Entrepreneurship Act.

 The Foreign Ships Co-Loading Act will now allow foreign ships carrying imported cargoes and cargoes to be exported out of the country to dock in multiple ports. This will reduce logistics costs and lead to lower prices for consumers.

In addition, it will also lead to more efficient port operations and a more competitive Philippines in the ASEAN integration.

The Youth Entrepreneurship Act, for its part, is seen as an effective tool to address the growing number of jobless young people in the country, which currently stands at 1.32 million.

Financial literacy and entrepreneurship courses will now be included in all levels of education to build an entrepreneurship culture among Filipinos.  A youth entrepreneurship fund shall also be made available to cater to youth entrepreneurs in the country.

Last year, Sen. Bam’s Go Negosyo Act and the Philippine Lemon Law were enacted into laws and are now awaiting for the said three bills to be signed by the President.  Once signed, Sen. Bam’s portfolio will consist of five laws in two years. 

 “Hindi mahalaga kung neophyte o beterano sa senado. Ang mahalaga ay kung makakagawa ka ng mga panukala na makakapagpabuti sa buhay ng nakararaming Pilipino,” Sen. Bam said.

Aside from these three measures, the 16th Congress also ratified measures ensuring the safety of children aboard two-wheeled motorcycles travelling along public and private roads, protecting the amateur nature of student-athletes in the country and the establishment of an open high school system in the country.

BIDA KA!: Trabaho, Negosyo, Tiwala

Mga Bida, sa huling survey na inilabas ng Pulse Asia, si Senate President Franklin Drilon ang lumabas na pinakapinagkakatiwalaang pinuno ng pamahalaan.

Nabanggit din ni SP Drilon ito noong nakapanayam niya si Karen Davila.  Nabanggit niya na dahil sa tuluy-tuloy na trabaho ng buong Senado, kaya niya nakamit ang rating na ito.

Noon pa man, ilang beses na na­ting sinasabi na upang muling makuha ang tiwala ng taumbayan, kailangan na­ming mga senador na ipagpatuloy ang pagtatrabaho sa gitna ng mga iskandalo upang mas mapaganda ang buhay ng ating mga kapwa Pilipino, lalung-lalo na ang ating mga kababayang naghihirap.

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Kaya naman, sa gitna ng ingay-pulitika kaugnay ng nalalapit na halalan, patuloy pa rin ang pagtutok ng ating opisina sa mga panukalang magpapatibay sa ating ekonomiya at makakatulong na makaahon sa kahirapan ang ating mga kababayan.

Mabigat ang mga ito para sa isang bagong senador, pero dahil mahalaga ito para sa taumbayan, tinutukan ito ng inyong lingkod.

Kamakailan, inaprubahan ng dalawang sangay ng Kongreso ang tatlong mahahalagang panukala at naghihintay na lang ng pirma ni Pangulong Noynoy Aquino upang maging mga batas.
Kapag naging batas, malaki ang maitutulong nito sa paglago ng ating kabataan at maliliit na negosyante, mabawasan ang bilang ng walang trabaho at sa paglakas ng ekonomiya ng bansa.

Una, naratipikahan na ang Youth Entrepreneurship Act, na la­yong tugunan ang lumalaking bilang ng kabataang walang trabaho sa bansa.

Sa ulat ng Philippine Statistics Authority (PSA) at National Statistics Office (NSO), may 1.32 milyong kabataang may edad mula 15 hanggang 24-anyos ngayon ang walang trabaho.

Sa nasabing panukala, magtuturo na ng financial literacy at pagnenegosyo sa ating mga eskuwelahan upang masimulan na ang kultura ng pagnenegosyo sa ating bansa.

Pangarap natin na lalo pang  dumami ang mga nagnenegosyo sa ating mga kababayan habang lumalago ang ating bansa, at mainam na simulan na ito habang bata pa.

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Ikalawa, inaasahan sa Foreign Ships Co-Loading Act na maka­tutulong na mapababa ang presyo ng shipping ng mga produkto sa iba’t ibang bahagi ng bansa.

Sa ilalim ng nasabing panukala, papayagan na ang mga dayuhang barko na galing sa international ports na dumaong sa iba’t ibang pantalan sa bansa para magbaba at magsakay ng kargamentong in-import at ie-export.

Sa gayon, wala nang double handling na gagawin at mumura ang presyo ng logistics sa bansa.

Alam ninyo, mga Bida, ang malaking bahagi ng presyo ng bili­hin ang napupunta sa logistics kaya inaasahan namin na bababa ang halaga ng produkto sa merkado.

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Huli, humigit-kumulang na 25 taon din itong nabimbin sa Kongreso, pero sulit naman ang paghihintay ngayong naipasa natin sa Kamara ang Philippine Competition Act.

Sa tulong nito, magkakaroon ng patas na pagkakataon ang lahat ng negosyo, mawawala ang lahat ng mga cartel, mga nag-price fixing, nagtatago ng supply upang tumaas ang presyo, iba pang anti-competitive agreements at abuso ng malalaking kompanya.

Mga Bida, kapag may nang-aabuso sa merkado, ang talo riyan ay ang mga mamimili. Nawawalan sila ng pagkakataong pumili ng produkto, nagmamahal ang presyo ng bilihin at nahihirapang makapasok ang bagong mga kompanya na maaaring magbigay ng mas magandang serbisyo at produkto sa merkado.

Sa batas na ito, bababa ang presyo ng bilihin, mas marami nang pagpipilian at mas maraming innovation na makikita ang mga mamimili sa merkado.

Susuportahan din nito ang ating maliliit na negosyante, ha­yaan silang lumago at magbigay ng maraming trabaho para sa ating mga kababayan.

Mga Bida, maraming salamat sa inyong tuluy-tuloy na suporta. Patuloy tayong maghahain ng mga panukala para sa kapaka­nan ng nakararaming Pilipino!

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Para sa reaksyon o suhestyon, mag-email sa bidakacolumn@gmail.com o mag-iwan ng mensahe sa www.facebook.com/BenignoBamAquino.

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Subaybayan si Sen. Bam Aquino sa kanyang bagong radio show, Status Update, tuwing Miyerkules, 11:00 am – 12:00 pm, sa RMN Manila DZXL 558.

 

First Published on Abante Online

 

 

After Long Wait, Congress Ratifies Act Penalizing Cartels, Abuse of Dominant Positions

“Historic, game-changing for our economy,” Sen. Bam Aquino describes the Philippine Competition Act after its ratification.

 After three decades of waiting and 30 hours of bicameral conference hearing, Congress has finally ratified the Philippine Competition Act that penalizes bad market behavior and abuse of dominant positions.

“If enacted into law, the measure will create a level playing field, whether big or small, when it comes to market opportunities,” said Sen. Bam Aquino, chairman of the Senate Committee on Trade, Commerce and Entrepreneurship.

For almost thirty years, the Philippines has remained one of few countries that does not have a valid competition policy that will protect its consumers and private industries.

“It has been one of the longest running bills in our history,” Sen. Bam said, as the first competition policy was filed in the 8th Congress.

After World War II, Japan passed its Original Antimonopoly Law in 1947 while the United Kingdom passed its Monopolies and Restrictive Practices Act in 1948.

Other ASEAN countries have also passed their respective competition laws, starting with Indonesia and Thailand in 1999, Singapore in 2004, Vietnam in 2005, and Malaysia in 2012.

“This is primary a huge victory for millions of consumers, who, in the end, will be the ultimate beneficiaries of this measure,” added Sen. Bam, whose Senate Bill No. 1027 or the Philippine Competition Act was among the measures consolidated under Senate Bill No. 2282.

President Aquino is expected to sign the measure into law as it is one of his administration’s urgent measures.

Sen. Bam said the Philippine Competition Act is expected to eliminate cartels, and penalize anti-competitive agreements and abuses of dominant players in the markets that lead to high prices of goods and services.

“In addition, the Philippine Competition Act promotes a culture of healthy competition that inspires ingenuity, creativity, and innovation in addressing market needs,” Sen. Bam said.

“We need more players in our markets, so that the quality of products and services increases, and prices of goods would then go down,” Sen. Bam added.

 The measure will also prohibit anti-competitive agreements and abuses of dominant position that distort, manipulate, or constrict the operations of markets in the Philippines.

“We thank the hard work of our fellow senators and our congress counterparts in coming up with a solid bill that will further help our economy down the road,” Sen. Bam emphasized.

Sen. Bam also credited the late Rep. Henry Cojuangco for actively pursuing the bill’s House version. Cojuangco died from aneurysm, hours before the bill hurdled the second reading at the House of Representatives last May 12. 

“Panalo ang taumbayan dahil sa pagpasa ng panukalang ito,” the senator highlighted.

“We would like to tell the world that with the Philippine Competition Act, our country is now open for business,” Sen. Bam happily declared.

Towards fair competition, healthier economy

In a competitive market, businesses gain success by creating quality products, managing expenses, achieving operational efficiency, and effectively communicating and catering to their market.

 

Nations around the world recognize the need to create a business environment that best reflects this through competition policies that guard against bad business behavior.

Back in 1890, the US enacted the US Sherman Act, the first set of national laws to deal with monopolies and restraints of trade.

 

Australia followed suit in 1906 with the Australian Industries Preservation Act. After World War II, Japan passed its Monopolies and Restrictive Practices (Inquiry and Control) Act.

 

More recently, our neighbors in Southeast Asia have also passed their respective competition laws: Indonesia and Thailand in 1999, Singapore in 2004, Vietnam in 2005, and Malaysia in 2012.

 

Finally, after two decades worth of attempts, the Philippines is on its way to enacting its first comprehensive competition law – a legislation aimed at protecting local businesses and building a vibrant, more competitive economy by putting an end to anti-competitive agreements, cartels, collusions, unfair & abusive practices.

 

At its core, the competition law is about maintaining opportunities for all to compete so that present market leaders cannot exclude up and coming challengers who might be able to lower prices, improve product quality, offer consumers more choices, or spark the next wave of innovation in the market.

 

The Fair Competition Act of 2014 has successfully passed through the Senate and the House of Representatives just recently approved the bill on its third reading – a big win for the Philippine economy, for local businesses, and for every Filipino consumer.

 

Reaping benefits

 

The benefits of healthy competition in industry, in developing countries in particular, have long been acknowledged. The Organisation for Economic Co-operation and Development (OECD) Global Forum on International Investment (2008) hailed the positive impact of promoting market competition in a number of developing economies, and among them is attracting foreign investments.

 

The OECD paper, “Competition Policy Enforcement: Experiences from Developing Countries and Implications for Investment,” stated that an effective competition policy will eliminate barriers to entry and exit of new business entities, curb anti-competitive practices, and lead to increased competition and, inevitably, greater investment into the country.

 

In our recent history, there are actual, observable examples of how increased competition has improved industry, spurred innovation, and resulted in better and cheaper choices for consumers.

 

In fact, we reap the benefits of healthy competition every time we flip through TV channels, struggle to decide which new restaurant to try, or marvel at the new upgrades on our latest smartphone.

Try and recall the first mobile phones introduced to the market in the early 1990s. Who would have guessed that in just two decades, those bulky analogs would transform into light, touch-screen devices of the future?

 

In just a few years, cellphones of all shapes and sizes were introduced, each one trying to one-up the other. The antenna became obsolete, screens got bigger and more colorful, batteries got lighter and more compact, and a variety of new features were introduced until the cellphone morphed into an all-in-one life-hacking device with an HD camera, editing tools, a music library, Internet access, Candy Crush, world maps, GPS tracking, Twitter, and a wealth of other helpful applications.

 

In the Philippines, with more and more companies selling mobile phones, there are a variety of brands and models to choose from. With this power to choose comes the power to demand quality phones at the lowest prices.

 

In 1997, a Nokia 5110 cost over P10,000. Today, that amount can buy you a Nokia Lumia with features that move well beyond calling, texting, and playing snake. Plus, you can purchase a similar, local brand mobile phone from Cherry Mobile or MyPhone for just a fraction of that price.

 

While the mobile phone used to be a status symbol for the elite, today you see anyone from students to sari-sari store owners and taxi drivers swiping through their own touch-screen phones.

 

Competition between mobile phone manufacturers spurred innovation in targeted markets, diversifying products while driving down prices for the benefit of both the industry and the consumers.

 

We’ve seen the same pattern in the airline industry. In the 1980s, the flights zipping through our archipelago were few, far between, and expensive. Flying to Davao to visit my mother’s family was a calculated, budgeted expense.

 

But with more airline companies came more flights and more choices for us Filipinos. Companies began getting to know the market better and started targeting specific groups – like budget travelers. Opportunity was found in lower prices and today, the country is in a flurry with ever promo fare announcement.

 

Power of competition

 

Now, more Filipinos get to explore the Philippines and the world for cheap. More entrepreneurs can fly across seas quickly and at any time of day to scout for partners and make sound business deals. The local tourism sector also benefitted greatly from the intense competition in the airline industry.

 

Such is the power of healthy competition in these specific industries, which we hope can be replicated in even more industries in the country. The Fair Competition Act can spearhead this healthy, competitive environment for our local business sector.

 

The legislation’s priority is to create a fair environment for all businesses – new or old, small or large. It penalizes business behavior that is anti-competition and that hinders our markets from providing the best options and opportunities for our consumers.

 

Businesses can no longer make moves to create barriers to entry for new players nor can they bully smaller enterprises by selling below cost or restricting market opportunities.

 

Colluding with other dominant players to fix prices, divide territories, or refuse deals with particular vendors will also be penalized and, in fact, criminalized.

 

But while this law is vigilant against exercise of market power, it is not against bigness. It respects dominance gained by competing on merits.

 

The Act seeks to establish a Fair Competition Commission (FCC) to look into the cases filed and objectively determine whether there have been abuses. The FCC is tasked to promote competition, enhance economic efficiency, and prohibit anti-competitive acts and abuse of power.

 

It will be supported by the existing Office for Competition (OFC) of the Department of Justice (DOJ). It will serve as the prosecutor in criminal cases filed and have exclusive authority over the criminal enforcement of this Act.

 

The FCC, OFC and other government agencies will work hand in hand to build a better business environment that the consumers desire and deserve.

 

For too long, the lack of a competition policy has crippled new businesses and left micro, small and medium enterprises (MSMEs) vulnerable to abuse. At the end of the day, it is our consumers that are robbed of better quality, more choices, and lower prices for products and services.

 

The Fair Competition Act is pro-poor, pro-people, and pro-business. It safeguards the welfare of businesses, large and small, and protects honest, hard-working entrepreneurs against abuse of dominance and other unfair practices that put them and their consumers at risk.

 

With four years of sustained economic growth, it is now time to work on strengthening our local industries, promoting a culture of competition and innovation, and boosting our potential to serve the global market with outstanding products and services.

 

While we acknowledge that the Fair Competition Act is not the miracle cure that will sustain our thriving economy, we believe that this is the necessary step, the significant leap towards a culture of healthy competition that promotes efficiency, and inspires ingenuity, creativity, and innovation in the Philippines.

More importantly, this culture of healthy competition is a fundamental building block in our transition to a sustainable and inclusive middle-income country – a dream for many of us Filipinos that now has a chance of becoming a reality.

 

First published on Rappler.com

 

 

Secure Competition Policy First, Cha-Cha Later – Sen. Bam

Pass the Fair Competition Act first before changing the economic provisions of the 1987 Constitution.

Senator Bam Aquino made this pronouncement, emphasizing that a competition law will provide Filipino businesses with the needed protection if economic provisions of the Charter are relaxed.

“We need to pass the competition law first. If you’re opening up the economic provisions of the Constitution at wala kang competition policy, then we’re opening up a lot of uncertainty,” Aquino said in a television interview.

“You’re opening up the gate pero hindi mo alam na ang papasok diyan will act fairly with the rest of the people in the house,” added Aquino, chairman of the Senate Committee on Trade, Commerce and Entrepreneurship.

The senator stressed that amending the economic provisions of the 1987 Constitution is needed to entice foreign direct investments and push the country to the next level of development.

Aquino recently sponsored Senate Bill No. 2282 or the Fair Competition Act of 2014. Senate Bill No. 2282 is a consolidation of several measures, including Aquino’s Senate Bill No. 1027 or the Philippine Fair Competition Act of 2013.

Aquino said the passage of the Fair Competition Act is long overdue because the Philippines is one of the few remaining countries without a competition policy that will protect consumers and businesses, whether big or small.

 Aside from this, the passage of a strong competition policy is crucial with the 2015 ASEAN Economic Integration fast approaching.

 

Fair Competition Act to Eliminate Cartels, Monopolies – Sen. Bam

The passage of the Fair Competition Act into law will eliminate monopolies, cartels and other unfair business practices that lead to high prices of goods and services.

Senator Bam Aquino, chairman of the Senate Committee on Trade, Commerce and Entrepreneurship, made this pronouncement during his sponsorship speech for Senate Bill No. 2282 or the Fair Competition Act of 2014.

“If this bill will be enacted into law, rice cartels that caused the sudden rice of prices will cease to exist,” the senator said, adding that President Aquino himself called for the elimination of this illegal practice to drive down prices of goods and other products.

Aquino said the bill safeguards the welfare of businesses, large and small, and protects honest, hard-working entrepreneurs against abuse of dominance and position, and other unfair practices that put both Filipino businesses and their consumers at risk.

“The Fair Competition Act, moreover, promotes a culture of healthy competition that inspires ingenuity, creativity, and innovation in addressing market needs,” added Aquino, whose Senate Bill No. 1027 or the Philippine Fair Competition Act of 2013 was among the measures consolidated under Senate Bill No. 2282.

In his speech, Aquino said the Fair Competition Act of 2014 will, among other things, promote and enhance economic efficiency and competition and ensure that industrial concentration would not limit economic power to a few.

“It will also prohibit anti-competitive agreements and abuses of dominant position that distort, manipulate, or constrict the operations of markets in the Philippines,” the senator stressed.

Aquino added that the push for inclusive growth would be much easier with a help of a competition policy that gives entrepreneurs and small businesses the capability to compete against big businesses.

“I’m hoping this competition policy, if passed, can support our micro, small and medium enterprises, let them grow into larger enterprises and provide more jobs to our countrymen,” Aquino emphasized.

At the same time, Aquino allayed fears that big businesses with high market share will be affected by the competition policy.

“This is not against companies that have high market share. It’s against companies with high market share and who are using that position to abuse their powers or abuse smaller players in the market,” he explained.

The Philippines is one of few developing countries that do not have a valid competition policy.

In the past two decades, Congress tackled several competition bills but lawmakers failed to find common ground on key provisions, hampering their passage into law.

“The Fair Competition Act is both pro-poor and pro-business.”

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