Villar Bill Goes After Monopolies

Sen. Manny Villar is seeking the speedy approval of a bill that will protect consumers against unfair trade practices and put an end to monopolies and cartels with the creation of an Office for Competition under the Department of Justice.

In his sponsorship speech before the Senate adjourned last Wednesday, Villar, chairman of the committee on trade and commerce, said Senate Bill 3098, or the Competition Act of 201, seeks to prevent the concentration of economic power in a few persons who threaten to control the production, distribution or trade to stifle competition, distort, manipulate or constrict the discipline of free markets and increase market prices.

Villar proposed the creation of an Office for Competition under the Department of Justice which will have the power to investigate possible monopolies and companies acting like cartels to the detriment of consumers.

The Office of Competition will have the power to issue subpoenas and require the production of books, record or other documents or to summon witnesses relevant to an investigation.

Villar said that while regulations discouraging the emergence of monopolies and cartels are not entirely new in the Philippines, existing laws have been proven inadequate and ineffective to inhibit anti-competitive structures and practices.

Villar noted that despite the ideal scenario of a perfect competition in the market, consolidations and mergers still occur which brings entire industries under the influence of a few people.

"When this happens, it opens the possibility of dominance over business drivers like price and supply by these chosen few. In effect, these so-called monopolies and cartels pose undue advantage over our micro, small, and medium enterprises thereby making it easier to drive out these smaller players from the industry," he said.

SB 3098 wants to make it unlawful for firms to engage in anti-competitive conduct or any conduct with the effect of unreasonably preventing, restricting or lessening substantially competition.

The bill penalizes abuse of dominance, which occurs when a firm abuses their market position by engaging in unfair competition with the purpose of preventing, restricting, or lessening competition. What constitutes this would be the selling of goods or services below cost, unless for clearance, inventory, sale or any other valid purpose; imposing barriers to entry; or setting prices or other terms or conditions that differ or discriminate between the customers and sellers.

QUESTION: Is the propose bill advantageous to the consumer or the business owner? Explain.

Source:https://ph.news.yahoo.com/villar-bill-goes-monopolies-205518386.html