FOR A nation dominated by a powerful few, a recent law signed by President Benigno Aquino III might effectively reshape the economic landscape of the Philippines.

Republic Act No. 10667 or the Philippine Competition Act provides for the regulation of the country’s markets in order to curtail anticompetitive behavior and punish cartels and other unfair monopolies.

The law had been in legislative limbo for 25 years until the Aquino administration declared it one of its priority legislations. On July 21, prominent lawmakers including Senate President Franklin Drilon and Speaker of the House of Representatives Feliciano Belmonte gathered at the Rizal Hall in Malacañang Palace as President Aquino signed the Act.

Proponents of the law have expressed confidence in its ability to impact the national economy positively. In an article written by Senator Bam Aquino for Rappler, he said that the law is “pro-poor, pro-people, and pro-business.” Senator Aquino is a co-author of the law.

For his part, President Aquino has said that both producers and consumers will be able to take advantage of the law one way or another.

“Dito makakamit natin ang punto kung saan ang mamimili, mas totoo ang presyong binabayaran, ang nagbebenta naman, nahihikayat na pahusayin pa ang kanilang serbisyo (We will be able to reach a point where buyers will be able to purchase goods at their genuine value, and sellers will be encouraged to improve their craft),” he said in a speech during the signing of the law.

“Sa dulo, lahat nakikinabang, lahat panalo (In the end, everyone will benefit; everyone wins),” he added.

Credentials in question

However, with the bill now signed into law, focus has shifted to its implementation.

One of the salient provisions provides for the creation of a Philippine Competition Commission (PCC), a quasi-judicial body charged with implementing national competition policy.

Under the law, the PCC will be headed by a Chairperson and four Commissioners who will be appointed by the President.

Marissa Paderon, PhD, a professor from the Economics Department and an expert on competition law, said that the people appointed to the Commission would be vital to the success of the PCC.

“I don’t have doubts [on the effectiveness of the law] as long as…the people assigned these particular positions in the PCC [have] the commitment to implement effectively the main objectives of this law,” she said.

Even during the deliberations of the law in Congress, there have already been issues over the proposed commission’s integrity and impartiality.

In an interview with Rappler, Senator Aquino said that business groups were concerned that should the President and the Commission be corrupt, the PCC will be used as a tool to harass businesses.

According to Assistant Secretary of the Department of Justice (DOJ) Atty. Geronimo Sy, it is still too early to tell whether the PCC will thrive or not. He said that the PCC is a newly created body and as such, there is pressure on the Commissioners.

“Ultimately, it will depend on the leadership and management of the people who will run the PCC. It’s a tough job [because] it’s going to be a very new agency,” Sy said.

Equal under the law

The PCC’s ability to go after large, powerful corporations will also come under scrutiny. According to Sy, these monopolists have always been a mainstay in the Philippine economy.

“It has always been an issue, as in developing countries and elsewhere, that bigger corporations have a built-in advantage to enter new markets and make profits from existing [ones],” he said.

Senator Aquino told Rappler that the Philippine Competition Act and the PCC are the first steps in bringing cartels and other violators to justice.

“[There will be] no exemptions…The power of the Commission is quite wide, and we did not exempt any industries,” he said.

The law is expected to make a large impact on Philippine agriculture, where recent revelations of a garlic and onion cartel sparked outrage among Filipinos.

In the years 2014 and 2015, the DOJ implicated around 100 people in a conspiracy to manipulate prices of garlic, and later, onions.

The discovery prompted lawmakers to call for the disbandment of the cartel as well as more stringent rules to protect Filipino farmers.

Consumers rejoice

On the other side of the market, Filipino consumers are widely expected to benefit from the enactment of the Philippine Competition Act.

The Philippine Competition Act states that “unencumbered market competition…serves the interest of the consumers by allowing them to exercise their right of choice.”

According to Paderon, the law will lead to an increase in “consumers’ consumption possibilities.”

“[Consumers] will be open to have more choices of goods and services, better quality [products], and [these] will be sold at competitive prices,” she said.

In the end, experts like Sy are optimistic that the law will be able to raise awareness for consumer rights in the country.

“Filipinos should be more aware…on the day-to-day consumerism that we experience, not putting up with sloppy service or unfair practices that we experience day-to-day,” he said.