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Senate Bill No. 2282 under Committee Report No. 56

Otherwise known as the
Fair Competition Act of 2014

Senator Paolo Benigno Aquino IV
16
th
Congress, Senate of the Philippines
Sponsorship Speech, 30 July 2014

Mr. President, distinguished colleagues, good afternoon.

It is my honor and privilege to stand before you today to sponsor Senate Bill No. 2282
under Committee Report No. 56 otherwise known as the Fair Competition Act of 2014.

In a country where 99% of the economy and 66% of all jobs in the labor force are
powered by micro, small, and medium enterprises, it is our duty to create an
environment where local businesses of all types will thrive.

A fair competition policy will level the playing field for Filipino businesses and allow
more Filipinos to exercise their entrepreneurial spirit. It will encourage competition,
innovation, and the creation of better products and services.

It will drive production efficiencies and better supply chain management; and,
ultimately, give the Filipino public a wider range of products and services to choose
from while driving down prices.

A fair competition policy, in tandem with our recently enacted Go Negosyo Act, will
open the gates for more Filipinos to make a living out of their own businesses, generate
employment, strengthen more Filipinos purchasing power, and help drive inclusive
growth.

We also see that an effective fair competition policy would lead to economic
development not only in our urban centers but also in our struggling agricultural and
fisheries sectors, which are the sources of livelihood for millions of our countrymen in
the rural areas.

And in light of an increasingly connected global economy and the integration of the
ASEAN Economic Community in 2015, a fair competition policy will also promote
standards of quality and excellence among our local businesses, promote a sustained
increase in production, and advance domestic and international trade.

With fair competition, everyonebusinesses and the consuming public alikewins.

We, therefore, submit to this august chamber the Fair Competition Act of 2014, which
will pave the way for the establishment of a Competition Commission that will:
o Promote and enhance economic efficiency and competition;
o Ensure that industrial concentration would not limit economic power to a few;
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o And prohibit anti-competitive agreements and abuses of dominant position that
distort, manipulate, or constrict the operations of markets in the Philippines.

The Organisation for Economic Co-operation and Development (OECD) Global Forum
on International Investment, in a paper published as far back as 2008, entitled,
Competition Policy Enforcement: Experiences from Developing Countries and
Implications for Investment, illustrated the effects of an effective competition regime as
such:
An effective competition policy will eliminate barriers to entry and exit of new
business entities,
While a strong competition law will curb anti-competitive practices.
Both will lead to increased competition in the market, and, therefore, to greater
investment.

For the Philippines, which still lags behind in the region in terms of foreign direct
investments (FDI), more investments coming in will mean greater production in the
market that will lead to lower prices and higher quality of goods and services for the
Filipino consumers.

Unfortunately, Mr. President, distinguished colleagues, the Philippines still does not
have a competition policy and law that will protect its consumers and private industries.

For our information, the US had its first competition policy with its US Sherman Act in
1890
1
. Australia followed suit with its Australian Industries Preservation Act in 1906
2
.

Then, after World War II, Japan passed its Original Antimonopoly Law in 1947
3
and the
United Kingdom passed its Monopolies and Restrictive Practices (Inquiry and Control)
Act in 1948
4
.

Moreover, in the ASEAN Economic Community Blueprint, each member country is
called upon to introduce a competition policy by 2015.

Our neighbors have passed their competition laws already: Indonesia and Thailand in
1999, Singapore in 2004, Vitenam in 2005, and Malaysia in 2012.

It is imperative that we catch up if we seek to be a contender in an increasingly
integrated and global economy.

1
Sherman Anti-Trust Act of 1890. Accessed through
http://www.shrm.org/legalissues/federalresources/federalstatutesregulationsandguidanc/pages/shermananti-
trustactof1890.aspx last July 27, 2014
2
Australian Competition Policy. Accessed through
http://www.aph.gov.au/About_Parliament/Parliamentary_Departments/Parliamentary_Library/Publications_Arch
ive/archive/ncpebrief last July 27, 2014.
3
Suzumura, Kotaro (2008). Japans Antimonopoloy Law and Competition Policy: Historical Evolution and Deliberate
Design. A presentation to the Australian National University. Waseda Universtiy. Accessed through
https://crawford.anu.edu.au/pdf/seminars/ajrc/Suzumura.ppt last July 27, 2014.
4
Scott, Andrew (2009). The Evolution of Competition Law and Policy in the United Kingdom. London School of
Economics and Politics. Accessed through http://www.lse.ac.uk/collections/law/wps/wps2009-09_scott.pdf last
July 27, 2014.
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Panahon na po talaga na maipasa natin ang napakahalagang panukalang ito. Ang
pagkakaroon po ng Fair Competition Act ay para sa ikabubuti ng mga negosyo sa
Pilipinasmaliit man o malakiat para rin sa kapakanan ng mga mamimiling
Pilipino.

Mr. President, noong ako poy estudyante pa lamang noong 1990s, unang naibenta
ang pampersonal na cellphone sa merkado. Naaalala ko pa, ang unang type ng
cellphone noon ay medyo malaki, analog ang operating system, at may kamahalan
pa. Hindi pa colored ang mga screen noon, at lalong hindi ka pa makakakuha ng
litrato o video.

Pagkatapos ng ilang taon, pumasok sa merkado ang ibat ibang uri ng cellphone - at
ang mga itoy may ibat-ibang kulay at hugis, at may makabagong teknolohiyang
nagbigay ng pagkakataong gamitin ang cellphone di lamang para pang-text at
pantawag, kundi para na rin sa mga video calls, para sa gaming, para sa negosyo,
pang-Internet sa eskuwelahan, at, siyempre, pati na rin para sa social media at sa
pagkuha ng mga nauusong selfie.

Sa pagdami ng mga kumpanyang nagtitinda ng cellphone sa bansa, nagkaroon ng
mas maraming mapagpipilian ang mga mamimili, tumaas ang kalidad ng mga
cellphone, at nagkaroon ng mga murang produkto na mabibili ng mas nakararaming
Pilipino.

Ngayon po, ang mga cellphone ay abot-kaya na pati para sa ating mga aling tindera,
mamang drayber at maski mga estudyante sa mga pampublikong paaralan. Kahit
sino ngayonbasta bat magtipid ka lang at mag-ipon nang kauntiay kaya nang
bumili ng cellphone pati yung mas advanced na smartphone.

Pati ang ilang mga lokal na kumpanya ay gumagawa na rin ng mga mahuhusay na
smartphone na kayang makipagsabayan sa mga features ng mga imported brands.

Ang ganitong pag-usad ng merkado ang ating ninanais hindi lang sa larangan ng
mga cellphones, kundi pati na rin sa ibang mga industriya, para mas maraming mga
Pilipino ang makinabang sa mas magagandang mga produktot serbisyo, mas
murang mga bilihin, athigit sa lahatmas maraming mga trabaho dulot ng mas
maraming mga investments at bagong kumpanya dito sa bansa.

Noong 1997, mahigit sa sampung libong piso ang isang Nokia 5110, na text at call lang
ang puwedeng gawin sa analog nitong system, at ang puwedeng laruin lang ay snake.

Ngunit ngayon, ang sampung libong piso, makakabili na ng isang Nokia Lumia, na
isang smartphone, na hindi text at call lang ang puwedeng gawin, kundi makapaglaro
ng mas maraming games, makapag-Internet, makanood ng videos, makatugtog ng
music at makapagselfie.

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Noong 1997, iilan lang ang makabibili ng Nokia 5110 dahil sa kamahalan nito.
Ngayon, sa halagang isang libo lang o mas mababa pa may mabibili ng cellphone na
Cherry Mobile o MyPhone.

Ibig sabihin, dahil sa innovation at techonology dulot ng kumpetisyon, ang mga
kumpanya ng cellphone ay nakalikha ng mga produkto para sa mas malaking
merkado, para sa mas magandang serbisyo at para sa mas mababang presyo.

Mr. President, noong 1980s, napakamahal pong lumipad pauwi ng Davao para
bisitahin ko ang aking mga kamag-anak noon sa aking ina. Marahil, kakaunti lang
din ang available flights sa buong bansa kaya madalang ang aming pag-uwi.

Sa isang kapuluang bansa, mahalaga ang transportasyong panghimpapawid hindi
lang para sa pagpapatibay ng relasyon ng magkakapamilya, kundi para rin sa mas
mabilis na transportasyon ng mga produkto at serbisyo, at sa patuloy na pagpapa-
unlad ng bansa.

Noong nagkaroon ng ibang players sa airline industry, dumami ang flights sa buong
bansa. Naintroduce ang promo fares at nagbagsakan ang presyo ng airfare. Ngayon,
mas marami na ang mapagpipiliang flights sa kung saanman sa bansa, sa mas
mababang presyo.
Dahil sa kumpetisyon, mas naging innovative at creative ang ating mga airline
carriers. Napalawak ang merkado, napababa ang presyo, napataas ang kalidad ng
serbisyo, para sa mga Pilipino.

Kung itataguyod po natin ang kapakanan ng mga negosyomaliit man o malaki sa
pamamagitan ng Fair Competition Act, mabibigyan natin sila ng pagkakataong
gamitin ang kanilang likas na pagiging malikhain at madiskarte sa paggawa ng mga
bagong produkto, serbisyo, at inobasyon na papatok sa merkado.

Lahat tayo, panalo.

Mr. President, we believe that a Fair Competition Act is all at once 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 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.

We recognize that we will definitely need more than just the Fair Competition Act to
enable such a culture to take root, but we believe that this is the first necessary step.

Dalawang dekada na po nating tinatangkang maipasa ang panukalang ito. Ngayong
patuloy na umaarangkada ang ekonomiya ng Pilipinas, lalagyan pa ba natin ng
balakid ang tunay na pag-unlad dahil hindi natin maitaguyod ang kapakanan ng
ating mga negosyot mamamayan?
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This puts us, our Philippine industriesespecially our MSMEs and our people at a
grave disadvantage in light of the integration of the ASEAN Economic Community next
year.

As the Philippines works to level up from four years of sustained economic growth, fiscal
reforms and good governance, and heightened investor confidence, it is now time to
work on strengthening our local industries, promoting a culture of competition and
innovation, and boosting our potentials for serving the global market with outstanding
products and services.

We have said repeatedly that our key challenge in this half of the Aquino administration
is achieving inclusive growth and making true progress felt by each and every Filipino.

To reiterate, The Fair Competition Act, in conjunction with the recently enacted Go
Negosyo Act, will give government the mandate and the tools that it needs to boost local
productivity and global competitiveness.

Nabanggit din ng Pangulo ang pagkakaroon ng fair competition sa ating bansa. Ika
nga niya sa kanyang State of the Nation noong isang araw,
I quote: Pinapanday na natin ang sistema kung saan talagang patas ang
laban; kung saan ang sumusunod sa patakaran ay nakakarating sa nais
niyang paroonan; kung saan may tunay na kumpetisyong nagbubukal ng
pagkakataon at malawakang kaunlaran; kung saan ang lahat ay may
kakahayang panghawakan ang sariling kapalaran..." (end quote).

In light of next years ASEAN Economic Community integration, in light of the entry of
more global brands and businesses onto our shores, and in light of our thrust to make
the country more globally competitive and make doing business more fun in the
Philippines, this representation deems it urgent that a Fair Competition Act be passed
in order to give our people the support that they need to succeed.

Sa tulong ninyong lahat, mabibigyan natin ng pantay na pagkakataon ang mga
negosyong Pilipino na lumago at makipagsabayan sa buong mundo.

Dahil po sa isang bansang umuunlad, nararapat na tayong lahat, walang maiiwan at
sama-samang umaangat.

Maraming salamat po at magandang hapon.