In-House Community Magazine: Feat. Antitrust Report and more. Feb 2022 Issue.

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JURISDICTION UPDATES

PHILIPPINES

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Country’s Achievements under the Philippine Development Plan BY ERIC RECALDE

T

he National Economic Development Authority (NEDA) released in 2017 its five (5)-year Philippine Development Plan (Plan). It seeks to implement the lofty objectives of the Philippine Competition Act (PCA). In detail, it aims to review potentially anti-competitive legislation and policies, analyse competition issues in priority sectors, investigate anti-competitive conduct and agreements, promote competition-related policies and best practices, and conduct capacity-building activities for government agencies and other institutions. The Philippine Competition Commission (PCC) has made great strides in implementing the Plan. The pandemic has not deterred the PCC in fulfilling its mandate. It is worth mentioning its efforts having impact on businesses. It has taken a stand on significant competition law issues, as found in its numerous policy notes, affecting priority sectors. To date, it has trained its sights on rice, sugar, pharmaceutical, shipping, and construction industries. In 2020, the Supreme Court (in Philippine Construction Accreditation Board (PCAB) Vs. Manila Water Company, Inc.) considered the PCC’s stand on the nationality restriction IHC MAGAZINE

imposed on construction activities. It noted the PCC’s explanation that such restriction was unfair and a significant barrier to entry of foreign competition. This led the Supreme Court to invalidate the long-standing administrative rule limiting foreign contractors’ participation in the country’s construction activities. It is only a matter of time for this Supreme Court ruling to become final, and for PCAB to ultimately accede to this significant pronouncement. The PCC is mandated to align the country’s competition policies with various regulatory requirements. Consistent with such mandate, the PCC has coordinated with different regulatory agencies and other administrative bodies and has concluded special arrangements with the country’s financial regulators, namely: the Securities and Exchange Commission, the Bangko Sentral ng Pilipinas, and the Insurance Commission. It has also aligned with the Department of Justice and the Office of the Ombudsman for its enforcement actions. In the early years of PCA’s implementation, the PCC placed significant attention on the implementation of the country’s merger control regime. It is mandatory and suspensory, such that the transactions that meet the VOL 1 ISSUE 7, 2022


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