It's just curious to note that our President has told outright Congress to work on tougher Anti Trust Laws. I don't know if they can actually make the law strong enough and armed to the teeth so that no "cartel" or some such will dominate the Philippine market. SERIOUSLY, are they up to it?


Lawmaker backs stronger anti-trust law

Sunday, January 2, 2011

REP. Eduardo Gullas (Cebu, 1st district) is pushing for the passage of 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,” Gullas said.


Gullas stressed the need for Congress “to 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 urged Congress to pass a new Anti-Trust Law.

Competition

“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 safeguard consumers and abate anti-competitive practices in commerce.

“What is remarkable about US anti-trust laws is that they give administrators extensive powers not enjoyed by our regulators here in the Philippines,” Gullas 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.

Corporations in the US that resort to wrongful trade practices also face lawsuits, and are hit with large fines by the government, Gullas said.

He cited the case of Bristol-Myers Squibb Co., which was once found to have deceptively 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.

Gullas also cited the previously 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 recommended that it be blocked by the government on grounds the combination would reduce the number of pay TV competitors in most US markets from three to two.

Gullas likewise 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. (PR)

Published in the Sun.Star Cebu newspaper on January 03, 2011.

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