Prohibition of Monopolies and Trade Restraint

Section 1 declares that every agreement, contract, conspiracy, or combination in restraint of trade or commerce, or intended to prevent free competition by artificial means, is illegal.
Section 3 declares that certain combinations and contracts are contrary to public policy, illegal, and void when made under the specified import-related conditions.
Section 2 declares criminal liability for monopolization or attempted monopolization, or conspiracies to monopolize, by artificial means restraining free competition.

Section 7 defines “person” or “persons” to include corporations and associations wherever those words are used in the Act.

Section 1 prohibits any person from making or engaging in any agreement, contract, conspiracy, or combination in the form of trust or otherwise.
Section 1 makes unlawful conduct when the restraint is in restraint of trade or commerce, or when the arrangement is intended to prevent free competition in the market by artificial means.
Section 1 penalizes the prohibited conduct with a fine not exceeding PHP 5,000, or imprisonment not exceeding one year, or both, at the court’s discretion.

Section 2 penalizes any person who monopolize or attempt to monopolize.
Section 2 also penalizes any person who combine or conspire with another or others to monopolize by artificial means restraining free competition in the market.
Section 2 imposes the same penalty structure: a fine not exceeding PHP 5,000, or imprisonment not exceeding one year, or both, at the court’s discretion.

Section 3 declares illegal and void any combination, conspiracy, trust, agreement, or contract made by or between two or more persons where either party is engaged (as agent or principal) in importing from any foreign country into the Philippine Islands.
Section 3 makes such arrangements void when intended to operate in restraint of lawful trade or free competition in lawful trade or commerce, or to increase market price in any part of the Philippine Islands of:
- any article or articles imported or intended to be imported; or
- any manufacture into which such imported article enters or is intended to enter.
Section 3 penalizes persons engaged in the prohibited importation, and persons who combine or conspire to violate the section, with a fine not exceeding PHP 5,000, or imprisonment not exceeding one year, or both, at the court’s discretion.

Section 4 grants the Supreme Court and the Courts of First Instance concurrent jurisdiction to prevent and restrain violations of the Act.
Section 4 imposes on the Attorney-General, the Fiscal of the City of Manila, and the provincial fiscal (or whoever may act in their stead) the duty to institute proceedings to prevent and restrain violations.
Section 4 allows proceedings by petition setting forth the case and praying that the violation be enjoined or otherwise prohibited.
Section 4 requires that once the parties complained of are duly notified of the petition, the court proceeds to hearing and determination as soon as may be.
Section 4 authorizes the court, pending the petition and before final decree, to issue a temporary restraining order or prohibition when deemed just in the premises.

Section 5 provides that any property owned under the prohibited contract, combination, or pursuant to the prohibited conspiracy referenced in Sections 1 and 3 is forfeited to the Government of the Philippine Islands.
Section 6 grants any person injured in business or property by reason of anything forbidden or declared unlawful under the Act the right to recover threefold damages sustained.
Section 6 requires payment of costs of suit, including a reasonable attorney’s fee.

Section 7 ensures that the prohibitions and liabilities under the Act apply to corporations and associations through the definition of “person”.