Law Summary
Historical and Legal Basis for DOJ's Role in Competition
- Republic Act No. 4152 (1964) tasks the Secretary of Justice with studying laws on trusts and monopolies, updating legislation, investigating violations, and taking preventive or remedial actions against monopolistic practices.
- Act No. 3247 (1925) and Article 186 of the Revised Penal Code penalize monopolies and combinations restraining trade.
- The DOJ is legally recognized as the government’s principal legal counsel and prosecution arm (Executive Order No. 292, Administrative Code of 1987).
Executive Authority and Designation of the DOJ as Competition Authority
- The President has the constitutional power under Article VII, Section 17 of the 1987 Constitution to reorganize executive departments and designate authorities.
- By executive order, the DOJ is designated the Competition Authority with specific duties to enforce competition laws, prevent monopolistic practices, and protect consumers.
Duties and Responsibilities of the Department of Justice as Competition Authority
- Investigate and prosecute violations of competition laws including monopolization, cartels, and anti-competitive combinations.
- Enforce laws protecting consumers from abusive, fraudulent, or harmful business practices.
- Supervise markets to ensure compliance with competition laws and require assistance and reports from other government agencies.
- Monitor transparency and accountability within markets.
- Conduct studies, publish, and disseminate reports on competition to inform industries and consumers.
- Promote international cooperation and strengthen the Philippines’ trade relations through relevant agreements.
Creation and Composition of the Office for Competition
- An Office for Competition is established within the Office of the Secretary of Justice.
- The office will be staffed by legal and technical experts, consultants, and resource persons necessary to fulfill its mandate.
- The Secretary of Justice appoints the Chief/Head and members of the Office.
Funding Provisions
- Initial funding for the Office for Competition operations will come from the DOJ’s available funds.
- Future funding requirements will be included in the DOJ’s annual budget appropriations.
Legal Continuity and Effectivity
- A separability clause ensures that if any provision of the order is invalidated, other provisions remain effective.
- The executive order supersedes inconsistent orders, laws, rules, and regulations.
- The order takes effect immediately upon its publication in a newspaper of general circulation.