activities, as well as establish a National

Competition Policy to be implemented by

the Government of the Republic of the
Philippines and all of its political agencies
as a whole;
Sixteenth Congress
Second Regular Session (b) Prevent economic concentration which
will control the production, distribution,
Begun and held in Metro Manila, on Monday, the trade, or industry that will unduly stifle
twenty-eighth day of July, two thousand fourteen. competition, lessen, manipulate or
constrict the discipline of free markets;
REPUBLIC ACT No. 10667 and

AN ACT PROVIDING FOR A NATIONAL (c) Penalize all forms of anti-competitive

COMPETITION POLICY PROHIBITING agreements, abuse of dominant position
ANTI-COMPETITIVE AGREEMENTS, and anti-competitive mergers and
ABUSE OF DOMINANT POSITION AND acquisitions, with the objective of
ANTI-COMPETITIVE MERGERS AND protecting consumer welfare and
ACQUISITIONS, ESTABLISHING THE advancing domestic and international
PHILIPPINE COMPETITION COMMISSION trade and economic development.
AND APPROPRIATING FUNDS THEREFOR
Section 3. Scope and Application. — This Act
Be it enacted by the Senate and House of shall be enforceable against any person or entity
Representatives of the Philippines in Congress engaged in any trade, industry and commerce in
assembled: the Republic of the Philippines. It shall likewise be
applicable to international trade having direct,
CHAPTER I substantial, and reasonably foreseeable effects in
GENERAL PROVISIONS trade, industry, or commerce in the Republic of the
Philippines, including those that result from acts
Section 1. Short Title. – This Act shall be known done outside the Republic of the Philippines.
as the "Philippine Competition Act".
This Act shall not apply to the combinations or
Section 2. Declaration of Policy. – The efficiency activities of workers or employees nor to
of market competition as a mechanism for agreements or arrangements with their employers
allocating goods and services is a generally when such combinations, activities, agreements, or
accepted precept. The State recognizes that past arrangements are designed solely to facilitate
measures undertaken to liberalize key sectors in collective bargaining in respect of conditions of
the economy need to be reinforced by measures employment.
that safeguard competitive conditions. The State
also recognizes that the provision of equal Section 4. Definition of Terms. – As used in this
opportunities to all promotes entrepreneurial spirit, Act:
encourages private investments, facilitates
technology development and transfer and enhances (a) Acquisition refers to the purchase of
resource productivity. Unencumbered market securities or assets, through contract or
competition also serves the interest of consumers other means, for the purpose of obtaining
by allowing them to exercise their right of choice control by:
over goods and services offered in the market.
(1) One (1) entity of the whole or
Pursuant to the constitutional goals for the national part of another;
economy to attain a more equitable distribution of
opportunities, income, and wealth; a sustained (2) Two (2) or more entities over
increase in the amount of goods and services another; or
produced by the nation for the benefit of the
people; and an expanding productivity as the key (3) One (1) or more entities over
to raising the quality of life for all, especially the one (1) or more entities;
underprivileged and the constitutional mandate that
the State shall regulate or prohibit monopolies
(b) Agreement refers to any type or form
when the public interest so requires and that no
of contract, arrangement, understanding,
combinations in restraint of trade or unfair
collective recommendation, or concerted
competition shall be allowed, the State shall:
action, whether formal or informal,
explicit or tacit, written or oral;
(a) Enhance economic efficiency and
promote free and fair competition in trade,
industry and all commercial economic

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(c) Conduct refers to any type or form of (2) The relevant geographic
undertaking, collective recommendation, market comprises the area in
independent or concerted action or which the entity concerned is
practice, whether formal or informal; involved in the supply and
demand of goods and services, in
(d) Commission refers to the Philippine which the conditions of
Competition Commission created under competition are sufficiently
this Act; homogenous and which can be
distinguished from neighboring
(e) Confidential business areas because the conditions of
information refers to information which competition are different in those
concerns or relates to the operations, areas.
production, sales, shipments, purchases,
transfers, identification of customers, CHAPTER II
inventories, or amount or source of any PHILIPPINE COMPETITION COMMISSION
income, profits, losses, expenditures;
Section 5. Philippine Competition Commission. –
(f) Control refers to the ability to To implement the national competition policy and
substantially influence or direct the attain the objectives and purposes of this Act, an
actions or decisions of an entity, whether independent quasi-judicial body is hereby created,
by contract, agency or otherwise; which shall be known as the Philippine
Competition Commission (PCC), hereinafter
(g) Dominant position refers to a position referred to as the Commission, and which shall be
of economic strength that an entity or organized within sixty (60) days after the
entities hold which makes it capable of effectivity of this Act. Upon establishment of the
controlling the relevant market Commission, Executive Order No. 45 designating
independently from any or a combination the Department of Justice as the Competition
of the following: competitors, customers, Authority is hereby amended. The Office for
suppliers, or consumers; Competition (OFC) under the Office of the
Secretary of Justice shall however be retained,
with its powers and functions modified pursuant to
(h) Entity refers to any person, natural or
Section 13 of this Chapter.
juridical, sole proprietorship, partnership,
combination or association in any form,
whether incorporated or not, domestic or The Commission shall be an attached agency to the
foreign, including those owned or Office of the President.
controlled by the government, engaged
directly or indirectly in any economic Section 6. Composition of the Commission. – The
activity; Commission shall be composed of a Chairperson
and four (4) Commissioners. The Chairperson and
(i) Market refers to the group of goods or the Commissioners shall be citizens and residents
services that are sufficiently of the Philippines, of good moral character, of
interchangeable or substitutable and the recognized probity and independence and must
object of competition, and the geographic have distinguished themselves professionally in
area where said goods or services are public, civic or academic service in any of the
offered; following fields: economics, law, finance,
commerce or engineering. They must have been in
the active practice of their professions for at least
(j) Merger refers to the joining of two (2)
ten (10) years, and must not have been candidates
or more entities into an existing entity or
for any elective national or local office in the
to form a new entity;
immediately preceding elections, whether regular
or special: Provided, That at least one (1) shall be a
(k) Relevant market refers to the market in member of the Philippine Bar with at least ten (10)
which a particular good or service is sold years of experience in the active practice of law,
and which is a combination of the relevant and at least one (1) shall be an economist. The
product market and the relevant Chairperson and the Commissioners who shall
geographic market, defined as follows: have the rank equivalent of cabinet secretary and
undersecretary, respectively, shall be appointed by
(1) A relevant product market the President.
comprises all those goods and/or
services which are regarded as Section 7. Term of Office. – The term of office of
interchangeable or substitutable the Chairperson and the Commissioners shall be
by the consumer or the customer, seven (7) years without reappointment. Of the first
by reason of the goods and/or set of appointees, the Chairperson shall hold office
services’ characteristics, their for seven (7) years and of the first four (4)
prices and their intended use; and

Page 2 of 16
Commissioners, two (2) shall hold office for a term order, resolution, decision or other acts of the
of seven (7) years and two (2) for a term of five (5) Commission.
years. In case a vacancy occurs before the
expiration of the term of office, the appointment to Section 11. Staff. – The Commission shall appoint,
such vacancy shall only be for the unexpired term fix the compensation, and determine the status,
of the predecessor. qualifications, and duties of an adequate staff,
which shall include an Executive Director of the
The Chairperson and the Commissioners shall Commission. The Executive Director shall be
enjoy security of tenure and shall not be suspended appointed by the Commission and shall have
or removed from office except for just cause as relevant experience in any of the fields of law,
provided by law. economics, commerce, management, finance or
engineering for at least ten (10) years. The
Section 8. Prohibitions and Disqualifications. – members of the technical staff, except those
The Commissioners shall not, during their tenure, performing purely clerical functions, shall possess
hold any other office or employment. They shall at least a Bachelor’s Degree in any of the
not, during their tenure, directly or indirectly following lines of specialization: economics, law,
practice any profession, except in a teaching finance, commerce, engineering, accounting, or
capacity, participate in any business, or be management.
financially interested in any contract with, or any
franchise, or special privileges granted by the Section 12. Powers and Functions. — The
government or any subdivision, agency, or Commission shall have original and primary
instrumentality thereof, including government- jurisdiction over the enforcement and
owned and -controlled corporations or their implementation of the provisions of this Act, and
subsidiaries. They shall strictly avoid conflict of its implementing rules and regulations. The
interest in the conduct of their office. They shall Commission shall exercise the following powers
not be qualified to run for any office in the election and functions:
immediately succeeding their cessation from
office: Provided, That the election mentioned (a) Conduct inquiry, investigate, and hear
hereof is not a Barangay election or a Sangguniang and decide on cases involving any
Kabataan election. Provided, they shall not be violation of this Act and other existing
allowed to personally appear or practice as counsel competition laws motu proprio or upon
or agent on any matter pending before the receipt of a verified complaint from an
Commission for two (2) years following their interested party or upon referral by the
cessation from office. concerned regulatory agency, and institute
the appropriate civil or criminal
No spouse or relative by consanguinity or affinity proceedings;
within the fourth civil degree of any of the
Commissioners, the Chairperson and the Executive (b) Review proposed mergers and
Director of the Commission may appear as counsel acquisitions, determine thresholds for
nor agent on any matter pending before the notification, determine the requirements
Commission or transact business directly or and procedures for notification, and upon
indirectly therein during incumbency and within exercise of its powers to review, prohibit
two (2) years from cessation of office. mergers and acquisitions that will
substantially prevent, restrict, or lessen
Section 9. Compensation and Other Emoluments competition in the relevant market;
for Members and Personnel of the Commission.—
The compensation and other emoluments for the (c) Monitor and undertake consultation
members and personnel of the Commission shall with stakeholders and affected agencies
be exempted from the coverage of Republic Act for the purpose of understanding market
No. 6758, otherwise known as the "Salary behavior;
Standardization Act". For this purpose, the salaries
and other emoluments of the Chairperson, the (d) Upon finding, based on substantial
Commissioners, and personnel of the Commission evidence, that an entity has entered into an
shall be set based on an objective classification anti-competitive agreement or has abused
system, taking into consideration the importance its dominant position after due notice and
and responsibilities attached to the respective hearing, stop or redress the same, by
positions, and shall be submitted to the President applying remedies, such as, but not limited
of the Philippines for his approval. to, issuance of injunctions, requirement of
divestment, and disgorgement of excess
Section 10. Quorum. – Three (3) members of the profits under such reasonable parameters
Commission shall constitute a quorum and the that shall be prescribed by the rules and
affirmative vote of three (3) members shall be regulations implementing this Act;
necessary for the adoption of any rule, ruling,

Page 3 of 16
(e) Conduct administrative proceedings, (j) Monitor compliance by the person or
impose sanctions, fines or penalties for entities concerned with the cease and
any noncompliance with or breach of this desist order or consent judgment;
Act and its implementing rules and
regulations (IRR) and punish for (k) Issue advisory opinions and guidelines
contempt; on competition matters for the effective
enforcement of this Act and submit annual
(f) Issue subpoena duces tecum and and special reports to Congress, including
subpoena ad testificandum  to require the proposed legislation for the regulation of
production of books, records, or other commerce, trade, or industry;
documents or data which relate to any
matter relevant to the investigation and (l) Monitor and analyze the practice of
personal appearance before the competition in markets that affect the
Commission, summon witnesses, Philippine economy; implement and
administer oaths, and issue interim orders oversee measures to promote transparency
such as show cause orders and cease and and accountability; and ensure that
desist orders after due notice and hearing prohibitions and requirements of
in accordance with the rules and competition laws are adhered to;
regulations implementing this Act;
(m) Conduct, publish, and disseminate
(g) Upon order of the court, undertake studies and reports on anti-competitive
inspections of business premises and other conduct and agreements to inform and
offices, land and vehicles, as used by the guide the industry and consumers;
entity, where it reasonably suspects that
relevant books, tax records, or other (n) Intervene or participate in
documents which relate to any matter administrative and regulatory proceedings
relevant to the investigation are kept, in requiring consideration of the provisions
order to prevent the removal, of this Act that are initiated by
concealment, tampering with, or government agencies such as the
destruction of the books, records, or other Securities and Exchange Commission, the
documents; Energy Regulatory Commission and the
National Telecommunications
(h) Issue adjustment or divestiture orders Commission;
including orders for corporate
reorganization or divestment in the (o) Assist the National Economic and
manner and under such terms and Development Authority, in consultation
conditions as may be prescribed in the with relevant agencies and sectors, in the
rules and regulations implementing this preparation and formulation of a national
Act. Adjustment or divestiture orders, competition policy;
which are structural remedies, should only
be imposed:
(p) Act as the official representative of the
Philippine government in international
(1) Where there is no equally competition matters;
effective behavioral remedy; or
(q) Promote capacity building and the
(2) Where any equally effective sharing of best practices with other
behavioral remedy would be more competition-related bodies;
burdensome for the enterprise
concerned than the structural
(r) Advocate pro-competitive policies of
remedy. Changes to the structure
the government by:
of an enterprise as it existed
before the infringement was
committed would only be (1) Reviewing economic and
proportionate to the substantial administrative regulations, motu
risk of a lasting or repeated proprio or upon request, as to
infringement that derives from the whether or not they adversely
very structure of the enterprise; affect relevant market
competition, and advising the
concerned agencies against such
(i) Deputize any and all enforcement
regulations; and
agencies of the government or enlist the
aid and support of any private institution,
corporation, entity or association, in the (2) Advising the Executive
implementation of its powers and Branch on the competitive
functions; implications of government

Page 4 of 16
 actions, policies and programs; while allowing consumers a fair share of
and the resulting benefits, may not necessarily
be deemed a violation of this Act.
(s) Charging reasonable fees to defray the
administrative cost of the services An entity that controls, is controlled by, or is under
rendered. common control with another entity or entities,
have common economic interests, and are not
Section 13. Office for Competition (OFC), Powers otherwise able to decide or act independently of
and Functions. — The OFC under the Department each other, shall not be considered competitors for
of Justice (DOJ-OFC) shall only conduct purposes of this section.
preliminary investigation and undertake
prosecution of all criminal offenses arising under Section 15. Abuse of Dominant Position. – It shall
this Act and other competition-related laws in be prohibited for one or more entities to abuse their
accordance with Section 31 of Chapter VI of this dominant position by engaging in conduct that
Act. The OFC shall be reorganized and allocated would substantially prevent, restrict or lessen
resources as may be required therefor to effectively competition:
pursue such mandate.
(a) Selling goods or services below cost
CHAPTER III with the object of driving competition out
PROHIBITED ACTS of the relevant market: Provided, That in
the Commission’s evaluation of this fact,
Section 14. Anti-Competitive Agreements. – it shall consider whether the entity or
entities have no such object and the price
(a) The following agreements, between or established was in good faith to meet or
among competitors, are per se prohibited: compete with the lower price of a
competitor in the same market selling the
same or comparable product or service of
(1) Restricting competition as to
like quality;
price, or components thereof, or
other terms of trade;
(b) Imposing barriers to entry or
committing acts that prevent competitors
(2) Fixing price at an auction or
from growing within the market in an anti-
in any form of bidding including
competitive manner except those that
cover bidding, bid suppression,
develop in the market as a result of or
bid rotation and market allocation
arising from a superior product or process,
and other analogous practices of
business acumen, or legal rights or laws;
bid manipulation;
(c) Making a transaction subject to
(b) The following agreements, between or
acceptance by the other parties of other
among competitors which have the object
obligations which, by their nature or
or effect of substantially preventing,
according to commercial usage, have no
restricting or lessening competition shall
connection with the transaction;
be prohibited:
(d) Setting prices or other terms or
(1) Setting, Kmiting, or
conditions that discriminate unreasonably
controlling production, markets,
between customers or sellers of the same
technical development, or
goods or services, where such customers
investment;
or sellers are contemporaneously trading
on similar terms and conditions, where the
(2) Dividing or sharing the effect may be to lessen competition
market, whether by volume of substantially: Provided, That the
sales or purchases, territory, type following shall be considered permissible
of goods or services, buyers or price differentials:
sellers or any other means;
(1) Socialized pricing for the less
(c) Agreements other than those specified fortunate sector of the economy;
in (a) and (b) of this section which have
the object or effect of substantially
(2) Price differential which
preventing, restricting or lessening
reasonably or approximately
competition shall also be
reflect differences in the cost of
prohibited: Provided, Those which
manufacture, sale, or delivery
contribute to improving the production or
resulting from differing methods,
distribution of goods and services or to
technical conditions, or quantities
promoting technical or economic progress,
in which the goods or services are

Page 5 of 16
 sold or delivered to the buyers or (i) Limiting production, markets or
sellers; technical development to the prejudice of
consumers, provided that limitations that
(3) Price differential or terms of develop in the market as a result of or due
sale offered in response to the to a superior product or process, business
competitive price of payments, acumen or legal rights or laws shall not be
services or changes in the a violation of this Act:
facilities furnished by a
competitor; and Provided, That nothing in this Act shall be
construed or interpreted as a prohibition on having
(4) Price changes in response to a dominant position in a relevant market or on
changing market conditions, acquiring, maintaining and increasing market share
marketability of goods or through legitimate means that do not substantially
services, or volume; prevent, restrict or lessen competition:

(e) Imposing restrictions on the lease or Provided, further, That any conduct which
contract for sale or trade of goods or contributes to improving production or distribution
services concerning where, to whom, or in of goods or services within the relevant market, or
what forms goods or services may be sold promoting technical and economic progress while
or traded, such as fixing prices, giving allowing consumers a fair share of the resulting
preferential discounts or rebate upon such benefit may not necessarily be considered an abuse
price, or imposing conditions not to deal of dominant position:
with competing entities, where the object
or effect of the restrictions is to prevent, Provided, finally, That the foregoing shall not
restrict or lessen competition constrain the Commission or the relevant regulator
substantially: Provided, That nothing from pursuing measures that would promote fair
contained in this Act shall prohibit or competition or more competition as provided in
render unlawful: this Act.

(1) Permissible franchising, CHAPTER IV

licensing, exclusive MERGERS AND ACQUISITIONS
merchandising or exclusive
distributorship agreements such Section 16. Review of Mergers and Acquisitions.
as those which give each party the — The Commission shall have the power to review
right to unilaterally terminate the mergers and acquisitions based on factors deemed
agreement; or relevant by the Commission.

(2) Agreements protecting Section 17. Compulsory Notification. – Parties to

intellectual property rights, the merger or acquisition agreement referred to in
confidential information, or trade the preceding section wherein the value of the
secrets; transaction exceeds one billion pesos
(P1,000,000,000.00) are prohibited from
(f) Making supply of particular goods or consummating their agreement until thirty (30)
services dependent upon the purchase of days after providing notification to the
other goods or services from the supplier Commission in the form and containing the
which have no direct connection with the information specified in the regulations issued by
main goods or services to be supplied; the Commission: Provided, That the Commission
shall promulgate other criteria, such as increased
(g) Directly or indirectly imposing market share in the relevant market in excess of
unfairly low purchase prices for the goods minimum thresholds, that may be applied
or services of, among others, marginalized specifically to a sector, or across some or all
agricultural producers, fisherfolk, micro-, sectors, in determining whether parties to a merger
small-, medium-scale enterprises, and or acquisition shall notify the Commission under
other marginalized service providers and this Chapter.
producers;
An agreement consummated in violation of this
(h) Directly or indirectly imposing unfair requirement to notify the Commission shall be
purchase or selling price on their considered void and subject the parties to an
competitors, customers, suppliers or administrative fine of one percent (1%) to five
consumers, provided that prices that percent (5%) of the value of the transaction.
develop in the market as a result of or due
to a superior product or process, business Should the Commission deem it necessary, it may
acumen or legal rights or laws shall not be request further information that are reasonably
considered unfair prices; and necessary and directly relevant to the prohibition

Page 6 of 16
under Section 20 hereof from the parties to the Section 19. Notification Threshold. – The
agreement before the expiration of the thirty (30)- Commission shall, from time to time, adopt and
day period referred. The issuance of such a request publish regulations stipulating:
has the effect of extending the period within which
the agreement may not be consummated for an (a) The transaction value threshold and
additional sixty (60) days, beginning on the day such other criteria subject to the
after the request for information is received by the notification requirement of Section 17 of
parties: Provided, That, in no case shall the total this Act;
period for review by the Commission of the
subject agreement exceed ninety (90) days from (b) The information that must be supplied
initial notification by the parties. for notified merger or acquisition;

When the above periods have expired and no (c) Exceptions or exemptions from the
decision has been promulgated for whatever notification requirement; and
reason, the merger or acquisition shall be deemed
approved and the parties may proceed to
(d) Other rules relating to the notification
implement or consummate it. All notices,
procedures.
documents and information provided to or
emanating from the Commission under this section
shall be subject to confidentiality rule under Section 20. Prohibited. Mergers and
Section 34 of this Act except when the release of Acquisitions. – Merger or acquisition agreements
information contained therein is with the consent that substantially prevent, restrict or lessen
of the notifying entity or is mandatorily required to competition in the relevant market or in the market
be disclosed by law or by a valid order of a court for goods or services as may be determined by the
of competent jurisdiction, or of a government or Commission shall be prohibited.
regulatory agency, including an exchange.
Section 21. Exemptions from Prohibited. Mergers
In the case of the merger or acquisition of banks, and Acquisitions. – Merger or acquisition
banking institutions, building and loan agreement prohibited under Section 20 of this
associations, trust companies, insurance Chapter may, nonetheless, be exempt from
companies, public utilities, educational institutions prohibition by the Commission when the parties
and other special corporations governed by special establish either of the following:
laws, a favorable or no-objection ruling by the
Commission shall not be construed as dispensing (a) The concentration has brought about or
of the requirement for a favorable recommendation is likely to bring about gains in
by the appropriate government agency under efficiencies that are greater than the
Section 79 of the Corporation Code of the effects of any limitation on competition
Philippines. that result or likely to result from the
merger or acquisition agreement; or
A favorable recommendation by a governmental
agency with a competition mandate shall give rise (b) A party to the merger or acquisition
to a disputable presumption that the proposed agreement is faced with actual or
merger or acquisition is not violative of this Act. imminent financial failure, and the
agreement represents the least anti-
Section 18. Effect of Notification. — If within the competitive arrangement among the
relevant periods stipulated in the preceding section, known alternative uses for the failing
the Commission determines that such agreement is entity’s assets:
prohibited under Section 20 and does not qualify
for exemption under Section 21 of this Chapter, the Provided, That an entity shall not be prohibited
Commission may: from continuing to own and hold the stock or other
share capital or assets of another corporation which
(a) Prohibit the implementation of the it acquired prior to the approval of this Act or
agreement; acquiring or maintaining its market share in a
relevant market through such means without
violating the provisions of this Act:
(b) Prohibit the implementation of the
agreement unless and until it is modified
by changes specified by the Commission. Provided, further, That the acquisition of the stock
or other share capital of one or more corporations
solely for investment and not used for voting or
(c) Prohibit the implementation of the
exercising control and not to otherwise bring
agreement unless and until the pertinent
about, or attempt to bring about the prevention,
party or parties enter into legally
restriction, or lessening of competition in the
enforceable agreements specified by the
relevant market shall not be prohibited.
Commission.

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Section 22. Burden of Proof. – The burden of (a) There is power over more than one half
proof under Section 21 lies with the parties seeking (1/2) of the voting rights by virtue of an
the exemption. A party seeking to rely on the agreement with investors;
exemption specified in Section 21(a) must
demonstrate that if the agreement were not (b) There is power to direct or govern the
implemented, significant efficiency gains would financial and operating policies of the
not be realized. entity under a statute or agreement;

Section 23. Finality of Ridings on Mergers and (c) There is power to appoint or remove
Acquisitions. – Merger or acquisition agreements the majority of the members of the board
that have received a favorable ruling from the of directors or equivalent governing body;
Commission, except when such ruling was
obtained on the basis of fraud or false material (d) There is power to cast the majority
information, may not be challenged under this Act. votes at meetings of the board of directors
or equivalent governing body;
CHAPTER V
DISPOSITION OF CASES (e) There exists ownership over or the
right to use all or a significant part of the
Section 24. Relevant Market. – For purposes of assets of the entity;
determining the relevant market, the following
factors, among others, affecting the substitutability (f) There exist rights or contracts which
among goods or services constituting such market confer decisive influence on the decisions
and the geographic area delineating the boundaries of the entity.
of the market shall be considered:
Section 26. Determination of Anti-Competitive
(a) The possibilities of substituting the Agreement or Conduct. – In determining whether
goods or services in question, with others anti-competitive agreement or conduct has been
of domestic or foreign origin, considering committed, the Commission shall:
the technological possibilities, extent to
which substitutes are available to
(a) Define the relevant market allegedly
consumers and time required for such
affected by the anti-competitive agreement
substitution;
or conduct, following the principles laid
out in Section 24 of this Chapter;
(b) The cost of distribution of the good or
service, its raw materials, its supplements
(b) Determine if there is actual or potential
and substitutes from other areas and
adverse impact on competition in the
abroad, considering freight, insurance,
relevant market caused by the alleged
import duties and non-tariff restrictions;
agreement or conduct, and if such impact
the restrictions imposed by economic
is substantial and outweighs the actual or
agents or by their associations; and the
potential efficiency gains that result from
time required to supply the market from
the agreement or conduct;
those areas;
(c) Adopt a broad and forward-looking
(c) The cost and probability of users or
perspective, recognizing future market
consumers seeking other markets; and
developments, any overriding need to
make the goods or services available to
(d) National, local or international consumers, the requirements of large
restrictions which limit access by users or investments in infrastructure, the
consumers to alternate sources of supply requirements of law, and the need of our
or the access of suppliers to alternate economy to respond to international
consumers. competition, but also taking account of
past behavior of the parties involved and
Section 25. Control of an Entity. – In determining prevailing market conditions;
the control of an entity, the Commission may
consider the following: (d) Balance the need to ensure that
competition is not prevented or
Control is presumed to exist when the parent owns substantially restricted and the risk that
directly or indirectly, through subsidiaries, more competition efficiency, productivity,
than one half (1/2) of the voting power of an entity, innovation, or development of priority
unless in exceptional circumstances, it can clearly areas or industries in the general interest
be demonstrated that such ownership does not of the country may be deterred by
constitute control. Control also exists even when overzealous or undue intervention; and
an entity owns one half (1/2) or less of the voting
power of another entity when:

Page 8 of 16
 (e) Assess the totality of evidence on the market such as but not limited to having
whether it is more likely than not that the superior skills, rendering superior service,
entity has engaged in anti-competitive producing or distributing quality products, having
agreement or conduct including whether business acumen, and the enjoyment and use of
the entity’s conduct was done with a protected intellectual property rights as violative of
reasonable commercial purpose such as this Act.
but not limited to phasing out of a product
or closure of a business, or as a reasonable Section 28. Forbearance. – The Commission may
commercial response to the market entry forbear from applying the provisions of this Act,
or conduct of a competitor. for a limited time, in whole or in part, in all or
specific cases, on an entity or group of entities, if
Section 27. Market Dominant Position. – In in its determination:
determining whether an entity has market
dominant position for purposes of this Act, the (a) Enforcement is not necessary to the
Commission shall consider the following: attainment of the policy objectives of this
Act;
(a) The share of the entity in the relevant
market and whether it is able to fix prices (b) Forbearance will neither impede
unilaterally or to restrict supply in the competition in the market where the entity
relevant market; or group of entities seeking exemption
operates nor in related markets; and
(b) The existence of barriers to entry and
the elements which could foreseeably alter (c) Forbearance is consistent with public
both said barriers and the supply from interest and the benefit and welfare of the
competitors; consumers.

(c) The existence and power of its A public hearing shall be held to assist the
competitors; Commission in making this determination.

(d) The possibility of access by its The Commission’s order exempting the relevant
competitors or other entities to its sources entity or group of entities under this section shall
of inputs; be made public. Conditions may be attached to the
forbearance if the Commission deems it
(e) The power of its customers to switch to appropriate to ensure the long-term interest of
other goods or services; consumers.

(f) Its recent conducts; and In the event that the basis for the issuance of the
exemption order ceases to be valid, the order may
(g) Other criteria established by the be withdrawn by the Commission.
regulations of this Act.
CHAPTER VI
There shall be a rebuttable presumption of market FINES AND PENALTIES
dominant position if the market share of an entity
in the relevant market is at least fifty percent Section 29. Administrative Penalties. –
(50%), unless a new market share threshold is
determined by the Commission for that particular (a) Administrative Fines. – In any
sector. investigation under Chapter III, Sections
14 and 15, and Chapter IV, Sections 17
The Commission shall from time to time determine and 20 of this Act, after due notice and
and publish the threshold for dominant position or hearing, the Commission may impose the
minimum level of share in the relevant market that following schedule of administrative fines
could give rise to a presumption of dominant on any entity found to have violated the
position. In such determination, the Commission said sections:
would consider the structure of the relevant
market, degree of integration, access to end-users, First offense: Fine of up to one
technology and financial resources, and other hundred million pesos
factors affecting the control of a market, as (P100,000,000.00);
provided in subsections (a) to (g) of this section.
Second offense: Fine of not less
The Commission shall not consider the acquiring, than one hundred million pesos
maintaining and increasing of market share (P100,000,000.00) but not more
through legitimate means not substantially than two hundred fifty million
preventing, restricting, or lessening competition in pesos (P250,000,000.00).

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 In fixing the amount of the fine, the CHAPTER VII
Commission shall have regard to both the ENFORCEMENT
gravity and the duration of the violation.
Section 31. Fact Finding; Preliminary Inquiry. –
(b) Failure to Comply With an Order of The Commission, motu proprio, or upon the filing
the Commission. – An entity which fails of a verified complaint by an interested party or
or refuses to comply with a ruling, order upon referral by a regulatory agency, shall have the
or decision issued by the Commission sole and exclusive authority to initiate and conduct
shall pay a penalty of not less than fifty a fact-finding or preliminary inquiry for the
thousand pesos (P50,000.00) up to two enforcement of this Act based on reasonable
million pesos (P2,000,000.00) for each grounds.
violation and a similar amount of penalty
for each day thereafter until the said entity The Commission, after considering the statements
fully complies. Provided that these fines made, or documents or articles produced in the
shall only accrue daily beginning forty- course of the fact-finding or preliminary inquiry,
five (45) days from the time that the said shall terminate the same by:
decision, order or ruling was received.
(a) Issuing a resolution ordering its closure
(c) Supply of Incorrect or Misleading if no violation or infringement of this Act
Information. – The Commission may is found; or
likewise impose upon any entity fines of
up to one million pesos (PI,000,000.00) (b) Issuing a resolution to proceed, on the
where, intentionally or negligently, they basis of reasonable grounds, to the
supply incorrect or misleading information conduct of a full administrative
in any document, application or other investigation.
paper filed with or submitted to the
Commission or supply incorrect or
The Commission, after due notice and hearing, and
misleading information in an application
on the basis of facts and evidence presented, may
for a binding ruling, a proposal for a
issue an order for the temporary cessation or
consent judgment, proceedings relating to
desistance from the performance of certain acts by
a show cause order, or application for
the respondent entity, the continued performance
modification of the Commission’s ruling,
of which would result in a material and adverse
order or approval, as the case may be.
effect on consumers or competition in the relevant
market.
(d) Any other violations not specifically
penalized under the relevant provisions of
If the evidence so warrants, the Commission may
this Act shall be penalized by a fine of not
file before the DOJ criminal complaints for
less than fifty thousand pesos
violations of this Act or relevant laws for
(P50,000.00) up to two million pesos
preliminary investigation and prosecution before
(P2,000,000.00).
the proper court. The DOJ shall conduct such
preliminary investigation in accordance with the
Provided that the schedule of fines indicated in this Revised Rules of Criminal Procedure.
section shall be increased by the Commission
every five (5) years to maintain their real value
The preliminary inquiry shall, in all cases, be
from the time it was set.
completed by the Commission within ninety (90)
days from submission of the verified complaint,
Section 30. Criminal Penalties. – An entity that referral, or date of initiation by the
enters into any anti-competitive agreement as Commission, motu proprio, of the same.
covered by Chapter III, Section 14(a) and 14(b)
under this Act shall, for each and every violation,
Except as provided in Section 12(i) of Chapter II
be penalized by imprisonment from two (2) to
of this Act, no law enforcement agency shall
seven (7) years, and a fine of not less than fifty
conduct any kind of fact-finding, inquiry or
million pesos (P50,000,000.00) but not more than
investigation into any competition-related matters.
two hundred fifty million pesos (P250,000,000.00).
The penalty of imprisonment shall be imposed
upon the responsible officers, and directors of the Section 32. Relationship With Sector Regulators. –
entity. The Commission shall have original and primary
jurisdiction in the enforcement and regulation of
all competition-related issues.
When the entities involved are juridical persons,
the penalty of. imprisonment shall be imposed on
its officers, directors, or employees holding The Commission shall still have jurisdiction if the
managerial positions, who are knowingly and issue involves both competition and
willfully responsible for such violation. noncompetition issues, but the concerned sector
regulator shall be consulted and afforded

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reasonable opportunity to submit its own opinion fact-finding or preliminary inquiry has begun if the
and recommendation on the matter before the following conditions are met:
Commission makes a decision on any case.
(a) At the time the entity comes forward,
Where appropriate, the Commission and the sector the Commission has not received
regulators shall work together to issue rules and information about the activity from any
regulations to promote competition, protect other source;
consumers, and prevent abuse of market power by
dominant players within their respective sectors. (b) Upon the entity’s discovery of illegal
activity, it took prompt and effective
Section 33. Power to Investigate and Enforce action to terminate its participation
Orders and Resolutions. – The Commission shall therein;
conduct inquiries by administering oaths, issuing
subpoena duces tecum and summoning witnesses, (c) The entity reports the wrongdoing with
and commissioning consultants or experts. It shall candor and completeness and provides
determine if any provision of this Act has been full, continuing, and complete cooperation
violated, enforce its orders and carry out its throughout the investigation; and
resolutions by making use of any available means,
provisional or otherwise, under existing laws and (d) The entity did not coerce another party
procedures including the power to punish for to participate in the activity and clearly
contempt and to impose fines. was not the leader in, or the originator of,
the activity.
Section 34. Confidentiality of Information. –
Confidential business information submitted by Even after the Commission has received
entities, relevant to any inquiry or investigation information about the illegal activity after a fact-
being conducted pursuant to this Act as well as any finding or preliminary inquiry has commenced, the
deliberation in relation thereto, shall not, in any reporting entity will be granted leniency, provided
manner, be directly or indirectly disclosed, preceding conditions (b) and (c) and the following
published, transferred, copied, or disseminated. additional requirements are complied with:
Likewise, the Commission shall, to the extent
possible, subject such information to the
(1) The entity is the first to come forward
confidentiality rule provided under this section
and qualify for leniency;
when it issues notices, bulletins, rulings and other
documents: Pi’ovided., That the confidentiality
rule shall not apply if the notifying entity consents (2) At the time the entity comes forward,
to the disclosure, or the document or information is the Commission does not have evidence
mandatorily required to be disclosed by law or by a against the entity that is likely to result in
valid order of a court of competent jurisdiction or a sustainable conviction; and
of a government or regulatory agency, including an
exchange. The identity of the persons who provide (3) The Commission determines that
information to the Commission under condition of granting leniency would not be unfair to
anonymity, shall remain confidential, unless such others.
confidentiality is expressly waived by these
persons. Such program shall include the immunity from any
suit or charge of affected parties and third parties,
Any violation of this provision shall be imposed a exemption, waiver, or gradation of fines and/or
fine of not less than one million pesos penalties giving precedence to the entity
(PI,000,000.00) but not more than five million submitting such evidence. An entity cooperating or
pesos (P5,000,000.00). furnishing information, document or data to the
Commission in connection to an investigation
Section 35. Leniency Program. – The Commission being conducted shall not be subjected to any form
shall develop a Leniency Program to be granted to of reprisal or discrimination. Such reprisal or
any entity in the form of immunity from suit or discrimination shall be considered a violation of
reduction of any fine which would otherwise be this Act subject to the sanctions provided in this
imposed on a participant in an anti-competitive Act.
agreement as provided in Section 14(a) and 14(b)
of this Act in exchange for the voluntary disclosure Nothing in this section shall preclude prosecution
of information regarding such an agreement which for entities that report to the Commission false,
satisfies specific criteria prior to or during the fact- misleading, or malicious information, data or
finding or preliminary inquiry stage of the case. documents damaging to the business or integrity of
the entities under inquiry as a violation of said
Immunity from suit will be granted to an entity section. An entity found to have reported false,
reporting illegal anti-competitive activity before a misleading or malicious information, data, or
document may be penalized by a fine not less than

Page 11 of 16
the penalty imposed in the section reported to have interested party that any entity is
been violated by the entity complained of. conducting its business, in whole or in part
in a manner that may not be in accord with
The DOJ-OFC may likewise grant leniency or the provisions of this Act or other
immunity as provided in this section in the event competition laws, and it finds that the
that there is already a preliminary investigation issuance of a show cause order would be
pending before it. in the interest of the public, the
Commission shall issue and serve upon
Section 36. Nolo Contendere. – An entity charged such entity or entities a written description
in a criminal proceeding pursuant to Section 14(a) of its business conduct complained of, a
and 14(b) of this Act may enter a plea of Nolo statement of the facts, data, and
Contendere, in which he does not accept nor deny information together with a summary of
responsibility for the charges but agrees to accept the evidence thereof, with an order
punishment as if he had pleaded guilty. The plea requiring the said entity or entities to show
cannot be used against the defendant entity to cause, within the period therein fixed, why
prove liability in a civil suit arising from the no order shall issue requiring such person
criminal action nor in another cause of or persons to cease and desist from
action: Provided, That a plea of Nolo continuing with its identified business
Contendere  may be entered only up to arraignment conduct, or pay the administrative fine
and subsequently, only with the permission of the therein specified, or readjust its business
court which shall accept it only after weighing its conduct or practices;
effect on the parties, the public and the
administration of justice. (c) Consent Order. – At any time prior to
the conclusion by the Commission of its
Section 37. Non-Adversarial Remedies. — As an inquiry, any entity under inquiry may,
implementing and enforcement policy, the without in any manner admitting a
Commission shall, under such rules and violation of this Act or any other
regulations it may prescribe, encourage voluntary competition laws, submit to the
compliance with this Act and other competition Commission a written proposal for the
laws by making available to the parties concerned entry of a consent order, specifying
the following and other analogous non-adversarial therein the terms and conditions of the
administrative remedies, before the institution of proposed consent order which shall
administrative, civil or criminal action: include among others the following:

(a) Binding Ruling. — Where no prior (1) The payment of an amount

complaint or investigation has been within the range of fines provided
initiated, any entity that is in doubt as to for under this Act;
whether a contemplated act, course of
conduct, agreement, or decision, is in (2) The required compliance
compliance with, is exempt from, or is in report as well as an entity to
violation of any of the provisions of this submit regular compliance
Act, other competition laws, or reports;
implementing rules and regulations
thereof, may request the Commission, in (3) Payment of damages to any
writing, to render a binding ruling private party/parties who may
thereon: Provided, That the ruling is for a have suffered injury; and
specified period, subject to extension as
may be determined by the Commission, (4) Other terms and conditions
and based on substantial evidence. that the Commission deems
appropriate and necessary for the
In the event of an adverse binding ruling effective enforcement of this Act
on an act, course or conduct, agreement, or other Competition Laws:
or decision, the applicant shall be
provided with a reasonable period, which Provided, That a consent order shall not
in no case shall be more than ninety (90) bar any inquiry for the same or similar
days, to abide by the ruling of the acts if continued or repeated;
Commission and shall not be subject to
administrative, civil, or criminal action (d) Monitoring of Compliance. – The
unless the applicant fails to comply with Commission shall monitor the compliance
the provisions of this Act; by the entity or entities concerned, their
officers, and employees, with the final and
(b) Show Cause Order. — Upon executory binding ruling, cease and desist
preliminary findings motu proprio or on order, or approval of a consent judgment.
written complaint under oath by an Upon motion of an interested

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 party/parties, the Commission shall issue a or movement of basic necessities and prime
certification or resolution to the effect that commodities as defined by Republic Act No. 7581,
the entity or entities concerned have, or as amended, the fine imposed by the Commission
have not, as the case may be, complied or the courts, as the case may be, shall be tripled.
with a final and executory ruling, order, or
approval. Section 42. Immunity from Suit. – The
Chairperson,the Commissioners, officers,
(e) Inadmissibility of Evidence in employees and agents of the Commission shall not
Criminal Proceedings. – The request for a be subject to any action, claim or demand in
binding ruling, the show cause order, or connection with any act done or omitted by them
the proposal for consent order; the facts, in the performance of their duties and exercise of
data, and information therein contained or their powers except for those actions and
subsequently supplied by the entity or omissions done in evident bad faith or gross
entities concerned; admissions, oral or negligence.
written, made by them against their
interest; all other documents filed by Section 43. Indemnity. – Unless the actions of the
them, including their evidence presented Commission or its Chairperson, any of its
in the proceedings before the Commissioners, officers, employees and agents are
Commission; and the judgment or order found to be in willful violation of this Act,
rendered thereon; shall not be admissible performed with evident bad faith or gross
as evidence in any criminal proceedings negligence, the Commission, its Chairperson,
arising from the same act subject of the Commissioners, officers, employees and agents are
binding ruling, show cause order or held free and harmless to the fullest extent
consent order against such entity or permitted by law from any liability, and they shall
entities, their officers, employees, and be indemnified for any and all liabilities, losses,
agents. claims, demands, damages, deficiencies, costs and
expenses of whatsoever kind and nature that may
Section 38. Contempt. — The Commission may arise in connection with the exercise of their
summarily punish for contempt by imprisonment powers and performance of their duties and
not exceeding thirty (30) days or by a fine not functions.
exceeding one hundred thousand pesos (P
100,000.00), or both, any entity guilty of such The Commission shall underwrite or advance
misconduct in the presence of the Commission in litigation costs and expenses, including legal fees
its vicinity as to seriously interrupt any hearing, and other expenses of external counsel, or provide
session or any proceeding before it, including legal assistance to its Chairperson, Commissioners,
cases in which an entity willfully fails or refuses, officers, employees, or agents in connection with
without just cause, to comply with a summons, any civil, criminal, administrative or any other
subpoena or subpoena duces tecum legally issued action or proceeding, to which they are made a
by the Commission being present at a hearing, party by reason of, or in connection with, the
proceeding, session or investigation, refused to be exercise of authority or performance of duties and
sworn as a witness or to answer questions or to functions under this Act: Provided, That such legal
furnish information when lawfully required to do protection shall not apply to any civil, criminal,
so. administrative, or any action or proceeding that
may be initiated by the Commission, against such
Section 39. Appeals of the Decisions of the Chairperson, Commissioners, officers, employees,
Commission. – Decisions of the Commission shall or agents: Provided, further, That the Chairperson,
be appealable to the Court of Appeals in Commissioners, officers, employees, or agents,
accordance with the Rules of Court. The appeal who shall resign, retire, transfer to another agency
shall not stay the order, ruling or decision sought or be separated from the service, shall continue to
to be reviewed, unless the Court of Appeals shall be provided with such legal protection in
direct otherwise upon such terms and conditions it connection with any act done or omitted to be done
may deem just. In the appeal, the Commission by them in good faith during their tenure or
shall be included as a party respondent to the case. employment with the Commission: Provided,
finally, That in the event of a settlement or
Section 40. ‘Writ of Execution. – Upon the finality compromise, indemnification shall be provided
of its binding ruling, order, resolution, decision, only in connection with such matters covered by
judgment, or rule or regulation, collectively, the the settlement as to which the Commission is
Commission may issue a writ of execution to advised by counsel that the persons to be
enforce its decision and the payment of the indemnified did not commit any negligence or
administrative fines provided in the preceding misconduct.
sections.
The costs and expenses incurred in defending the
Section 41. Basic Necessities and Prime aforementioned action, suit or proceeding may be
Commodities. – If the violation involves the trade paid by the Commission in advance of the final

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disposition of such action, suit or proceeding upon injustice and irreparable injury to the
receipt of an undertaking by or on behalf of the public: Provided, further,  That, the applicant shall
Chairperson, Commissioner, officer, employee, or file a bond, in an amount to be fixed by the Court,
agent to repay the amount advanced should it but in no case shall it exceed twenty percent (20%)
ultimately be determined by the Commission that of the imposable fines provided for under Chapter
one is not entitled to be indemnified as provided in VI, Section 29 of this Act: Provided, finally, That
this section. in the event that the court finally decides that the
applicant was not entitled to the relief applied for,
Section 44. Jurisdiction of the Regional Trial the bond shall accrue in favor of the Commission.
Court. – The Regional Trial Court of the city or
province where the entity or any of the entities Any temporary restraining order, preliminary
whose business act or conduct Constitutes the injunction or preliminary mandatory injunction
subject matter of a case, conducts its principal issued in violation of this section is void and of no
place of business, shall have original and exclusive force and effect. Any judge who violates this
jurisdiction, regardless of the penalties and fines section shall be penalized by suspension of at least
herein imposed, of all criminal and civil cases one (1) year without pay in addition to other
involving violations of this Act and other criminal, civil or administrative penalties.
competition-related laws. If the defendant or
anyone is charged in the capacity of a director, Section 48. Trade Associations. – Nothing
officer, shareholder, employee, or agent of a contained in this Act shall be construed to prohibit
corporation or other juridical entity who the existence and operation of trade associations
knowingly and willfully authorized the organized to promote quality standards and safety
commission of the offense charged, the Regional issues: Pi’ovided, That, these associations shall not
Trial Court of the city or province where such in any way be used to justify any violation of this
corporation or juridical entity conducts its Act: Provided, however, That it shall not be illegal
principal place of business, shall have jurisdiction. to use the association as a forum to discuss or
promote quality standards, efficiency, safety,
Section 45. Private Action. – Any person who security, productivity, competitiveness and other
suffers direct injury by reason of any violation of matters of common interest involving the
this Act may institute a separate and independent industry: Provided, further, That such is done
civil action after the Commission has completed without any anti-competitive intent or effect.
the preliminary inquiry provided under Section 31.
Section 49. Congressional Oversight Committee. –
CHAPTER VIII To oversee the implementation of this Act, there
OTHER PROVISIONS shall be created a Congressional Oversight
Committee on Competition (COCC) to be
Section 46. Statute of Limitations. — Any action composed of the Chairpersons of the Senate
arising from a violation of any provision of this Committees on Trade and Commerce, Economic
Act shall be forever barred unless commenced Affairs, and Finance, the Chairpersons of the
within five (5) years from: House of Representatives Committees on
Economic Affairs, Trade and Industry, and
 For criminal actions, the time the violation Appropriations and two (2) members each from the
is discovered by the offended party, the Senate and the House of Representatives who shall
authorities, or their agents; and be designated by the Senate President and the
 For administrative and civil actions, the Speaker of the House of
time the cause of action accrues. Representatives: Provided, That one (1) of the two
(2) Senators and one (1) of the two (2) House
Members shall be nominated by the respective
Section 47. Prohibition on the Issuance of
Minority Leaders of the Senate and the House of
Temporary Restraining Orders, Preliminary
Representatives. The Congressional Oversight
Injunctions and Preliminary Mandatory
Committee shall be jointly chaired by the
Injunctions. — Except for the Court of Appeals
Chairpersons of the Senate Committee on Trade
and the Supreme Court, no other court shall issue
and Commerce and the House of Representatives
any temporary restraining order, preliminary
Committee on Economic Affairs. The Vice
injunction or preliminary mandatory injunction
Chairperson of the Congressional Oversight
against the Commission in the exercise of its duties
Committee shall be jointly held by the
or functions: Provided, That, this prohibition shall
Chairpersons of the Senate Committee on
apply in all cases, disputes or controversies
Economic Affairs and the House of
instituted by a private party, including, but not
Representatives Committee on Trade and Industry.
limited to, cases filed by entities or those claiming
to have rights through such entities: Provided,
however,  That, this prohibition shall not apply The Secretariat of the COCC shall be drawn from
when the matter is of extreme urgency involving a the existing personnel of the Senate and House of
constitutional issue, such that the non-issuance of a Representatives committees comprising the
temporary restraining order will result in grave Congressional Oversight Committee.

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CHAPTER IX Section 54. Separability Clause. – If any clause,
FINAL PROVISIONS sentence, section or part of this Act shall be
adjudged by a court of competent jurisdiction to be
Section 50. Implementing Rules and Regulations. invalid, such judgment shall not affect, impair or
— Within one hundred eighty (180) days from the invalidate the remainder of this Act, but shall be
effectivity of this Act, the Commission, in confined in its operation to the clause, sentence,
consultation with the DOJ-OFC and concerned paragraph, section, or part thereof directly
sector regulators shall promulgate the necessary involved in the controversy.
implementing rules and regulations for the
implementation of this Act: Provided, That, the Section 55. Repealing Clause. – The following
Commission may revise such implementing rules laws, and all other laws, decrees, executive orders
and regulations as it deems necessary: Provided, and regulations, or part or parts thereof
however,  That such revised implementing rules inconsistent with any provision of this Act, are
and regulations shall only take effect fifteen (15) hereby repealed, amended or otherwise modified
days following its publication in two (2) accordingly:
newspapers of general circulation.
(a) Article 186 of Act No. 3815, otherwise
Section 51. Appropriations and Use of Fees, known as the Revised Penal
Charges and Penalties. – The initial budgetary Code: Provided, That violations of Article
requirements of the Commission of three hundred 186 of the Revised Penal Code committed
million pesos (P300,000,000.00) is hereby before the effectivity of this Act may
appropriated. continue to be prosecuted unless the same
have been barred by prescription, and
 All fees, fines, penalties collected by the subject to the procedure under Section 31
Commission shall not be retained by the of this Act;
Commission, but will be remitted to the
(b) Section 4 of Commonwealth Act No.
National Treasury and shall accrue to the 138;
general funds.
(c) Section 43(u) on Functions of the ERC
Such funds necessary for the continuous and of Republic Act No. 9136, entitled "An
effective operation of the Commission shall be Act Ordaining Reforms in the Electric
included in the annual General Appropriations Act. Power Industry, Amending for the
Purpose Certain Laws and for Other
Section 52. Transparency Clause. — Final Purposes", otherwise known as the
decisions, orders and rulings of the Commission "Electric Power Industry Reform Act
shall be published on the official website subject to of2001", insofar as the provision thereof is
Section 34 of this Act. inconsistent with this Act;

Records of public proceedings shall be made (d) Section 24 on Illegal Acts of Price
available to the public subject to Section 34 of this Manipulation and Section 25 on Penalty
Act.1âwphi1
for Illegal Acts of Price Manipulation of
Republic Act No. 9502, entitled "An Act
Section 53. Transitional Clause. — In order to Providing for Cheaper and Quality
allow affected parties time to renegotiate Medicines, Amending for the Purpose
agreements or restructure their business to comply Republic Act No. 8293 or the Intellectual
with the provisions of this Act, an existing Property Code, Republic Act No. 6675 or
business structure, conduct, practice or any act that the Generics Act of 1988, and Republic
may be in violation of this Act shall be subject to Act No. 5921 or the Pharmacy Law, and
the administrative, civil and criminal penalties for Other Purposes", otherwise known as
prescribed herein only if it is not cured or is the "Universally Accessible Cheaper and
continuing upon the expiration of two (2) years Quabrty Medicines Act of 2008". insofar
after the effectivity of this Act: Provided, That this as the provisions thereof are inconsistent
section shall not apply to administrative, civil and with this Act; and
criminal proceedings against anticompetitive
agreement or conduct, abuse of dominant position, (e) Executive Order No. 45, Series of
and anti-competitive mergers and acquisitions, 2011, Designating the Department of
initiated prior to the entry into force of this Justice as the Competition Authority,
Act: Provided, further, That during the said two Department of Justice Circular 005 Series
(2)-year period, the government shall undertake an of 2015, and other related issuances,
advocac program to inform the general public of insofar as they are inconsistent with the
the provisions of this Act. provisions of this Act.

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Section 56.Effectivity Clause. – This Act shall take
effect fifteen (15) days following its publication in
the Official Gazette or at least two (2) national
newspapers of general circulation.
Notwithstanding any provision herein, this Act
shall have no retroactive effect.

Approved,

(Sgd.) FELICIANO (Sgd.) FRANKLIN
BELMONTE JR. M. DRILON
Speaker of the House President of the
of Representatives Senate

This Act which is a consolidation of Senate Bill

No. 2282 and House Bill No. 5286 was finally
passed by the Senate and the House of
Representatives on June 10, 2015.

(Sgd.) MARILYN B. (Sgd.) FRANKLIN
BARUA-YAP M. DRILON
Secretary General President of the
House of Senate
Representatives

Approved: JULY 21, 2015

(Sgd) BENIGNO S. AQUINO III

President of the Philippines

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