After the conclusion of the public consultations conducted by the Philippine Competition Commission ("PCC") on May 24, 2016 and the lapse of the period for the submission of comments and suggested revisions to the draft implementing rules and regulations issued on May 10, 2016, the PCC has published the final implementing rules and regulations (the "Rules") of the Philippine Competition Act ("PCA") last June 3, 2016. The Rules took effect on June 18, 2016.
The PCA defines, prohibits and penalizes three types of anti-competitive conduct: anti-competitive agreements, abuse of dominant position, and anti-competitive mergers and acquisitions. The PCA, however, provides for a transition period of two years after the effectivity of the PCA to allow affected parties time to renegotiate agreements or restructure their business to comply with the provisions of the PCA and, thus, an existing business structure, conduct or practice or any act that may be in violation of the PCA shall be subject to administrative, civil and criminal penalties only if it is not cured or is continuing upon the expiration of such transition period. Because of this, the Rules largely reiterate the provisions of the PCA regarding anti-competitive agreements and abuse of dominant position. The Rules, however, provide additional guidelines regarding the merger notification regime under the PCA, including matters relating to joint ventures, thresholds for compulsory notification as well as the forms, requirements and procedures relating to merger notifications.
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For more information, please contact your account partner or the authors of this Legal Bulletin: Arlene M. Maneja, Franco Aristotle G. Larcina and Marianne C. Sibulo. |