Question & AnswerQ&A (Republic Act No. 1956)
Republic Act No. 1956 is an act amending Article 186 of the Revised Penal Code concerning monopolies and combinations in restraint of trade. Its purpose is to penalize contracts, agreements, conspiracies, or combinations that restrain trade or monopolize commerce in the Philippines.
The penalty is prision correccional in its minimum period or a fine ranging from two hundred to six thousand pesos, or both.
Any person who enters into any contract, agreement, conspiracy, or combination in the form of a trust or otherwise that restrains trade or commerce or prevents free competition by artificial means.
Monopolization includes monopolizing any merchandise or object of trade or commerce or combining with others to monopolize the merchandise in order to alter its price by spreading false rumors or using other means to restrain free competition.
The president, each director or manager, or agent or representative in the Philippines who knowingly permits or fails to prevent the commission of such offenses shall be held liable as principals.
The penalty becomes prision mayor in its minimum and medium periods. The offense is punishable even if only the initial steps have been taken toward carrying out the combination's purposes.
Any property possessed under any contract or combination mentioned as subject of the offense shall be forfeited to the Government of the Philippines.
Yes, agents or representatives of foreign corporations or associations in the Philippines who knowingly permit or fail to prevent the commission of offenses are liable as principals.
Combining, conspiring, or agreeing with others who are manufacturers, producers, importers, or processors to make transactions that are prejudicial to lawful commerce or to increase market prices of merchandise in the Philippines.
The Act took effect upon its approval on June 22, 1957.