Tough anti-trust law pushed

MANILA, Philippines - Cebu Rep. Eduardo Gullas is urging his colleagues in Congress to a new and potent anti-trust law that would protect consumers as well as businesses from wrongful and unfair methods of competition in commerce.

“Congress should heed President Aquino’s call for a new anti-trust law that will vigorously advance free and fair business competition across all industries,” he said.

He said lawmakers should “forcefully discourage potential pricing and other trade abuses, and to make all goods and services highly accessible at fair prices to the greatest number of consumers.”

In his first State of the Nation Address in July, President Aquino had urged Congress to pass a new anti-trust law.

“According to our Constitution, it is the government’s duty to ensure that the market is fair for all. No monopolies, no cartels that kill competition. We need an Anti-Trust Law that will give life to these principles, to afford small- and medium-scale enterprises the opportunity to participate in the growth of our economy,” the President said in his address.

Gullas said he favored new legislation patterned after the tough anti-trust laws of the United States.

He said America’s anti-trust laws give the US Federal Trade Commission and the US Department of Justice broad powers to protect consumers and abate anti-competitive practices in commerce.

“What is remarkable about these laws is that they give administrators extensive powers not enjoyed by our regulators here in the Philippines,” he said.

“In fact, US regulators can prevent corporate mergers or acquisitions that will result in a firm dominating an industry or service, or enjoying an undue market advantage over its rivals,” he added.

He pointed out that corporations in the US that resort to wrongful trade practices also face lawsuits, and are hit with large fines by the government.

Gullas cited the case of Bristol-Myers Squibb Co., which was once found to have filed new drug patent applications to stall the approval of generic competition. Bristol-Myers was forced to pay a multimillion-dollar settlement with the US government.

Another case he cited involved the planned merger of EchoStar Communications Corp. and Hughes Electronics Corp., two of the largest satellite TV providers in the US.

He said the deal failed after the US Department of Justice opposed it on grounds the merger would reduce the number of pay TV competitors in most US markets from three to two.

Gullas also cited Pfizer Inc.’s acquisition of Pharmacia Corp. Before they were allowed to merge, US regulators forced the two firms to sell their rights to some new drugs to their competitors, he said.