DOJ office against cartels created

MANILA, Philippines – President Aquino has created an Office for Competition under the Department of Justice (DOJ) to ensure that there will be no monopolies and cartels in domestic and international trade.

The President issued Executive Order 45 last June 9 designating the DOJ as the “Competition Authority.”

Its duties and responsibilities are to investigate all cases involving violations of competition laws and prosecute violators to prevent, restrain and punish monopolization, cartels and combinations in restraint of trade;

Enforce competition policies and laws to protect consumers from abusive, fraudulent, or harmful corrupt business practices; supervise competition in markets by ensuring that prohibitions and requirements of competition laws are adhered to, and to this end, call on other government agencies and/or entities for submission of reports and provision for assistance; monitor and implement measures to promote transparency and accountability in markets;

Prepare, publish and disseminate studies and reports on competition to inform and guide the industry and consumers; and promote international cooperation and strengthen Philippine trade relations with other countries, economies, and institutions in trade agreements.

The President said “the Office shall be manned by such number of staff, including legal and technical experts, consultants and resource persons to effectively and efficiently pursue its mandate.”

The secretary of justice shall designate the chief/head and members of the office, the EO states.

In issuing the order, the President cited Article II Section 20 of the 1987 Constitution which provides that the state “recognizes the indispensable role of the private sector, encourages private enterprise, and provides incentives to needed investments.”

“Sections 13 and 19, Article XII of the 1987 Constitution provide that the State shall pursue a trade policy that serves the general welfare and utilizes all forms and arrangements of exchange on the basis of equality and reciprocity and shall regulate or prohibit monopolies when the public interest so requires,” the EO reads.

It explained that the recent developments at the World Trade Organization, the ASEAN Free Trade Area and the trade liberalization initiatives under the Asia Pacific Economic Cooperation forum advocated competition in domestic and international trade.

In delegating the DOJ as the Competition Authority, the President cited Republic Act 4152 approved on June 20, 1964 vesting upon the justice secretary the duty “to study all laws relating to trusts, monopolies and combinations, draft such legislation as may be necessary to update or revise existing laws to enable the government to deal more effectively with monopolistic practices and all forms of trusts and combination in restraint of trade or free competition.