Skip to main content

PCC: MSMEs must know and exercise their rights under PH Competition Act


The Philippine Competition Commission (PCC) is encouraging micro, small and medium enterprises (MSMEs) to become familiar with the Philippine Competition Act (PCA) and go to the PCC if they believe there are violations of the law's provisions.

PCC Commissioner Johannes Benjamin R. Bernabe in an October 23 forum on competition policy highlighted the importance for MSMES to be aware of what exploitative business practices can constitute the so-called "abuse of market dominance."

Kung yung mga nakaka-deal ng mga MSMEs na maaaring malalaking kumpanya, kung kayo naman po yung supplier or intermediate user na maaaring naiipit ng malaking players sa mercado, ito naman iyong sinasabing relevant provision na kayo ang maaaring magsumbong sa PCC [If the MSMEs are dealing with big companies in the market as supplier or intermediate user and find themselves at a disadvantage, this may be the relevant provision that you can raise with the PCC]," said Mr. Bernabe.

While it is not illegal to have a dominant position in the market, it is, however, illegal to abuse one's dominant position, according to the PCC.

The competition law prohibits entities from abusing their dominant position in the market by engaging in conduct that would substantially prevent, restrict, or lessen competition.

Dominant position refers to "a position of economic strength that an entity or entities hold which makes it capable of controlling the relevant market independently from any or a combination of the following: competitors, customers, suppliers, or consumers," according to the PCC's Guide for Businesses.

Abuse of market dominance, meanwhile, is defined as "when an entity with a significant degree of power in a market engages in conduct that restricts competition."

Such conduct, it added, includes predatory pricing, imposing barriers to market entry, and the unfair exercise of monopoly of power, among others.

This could include selling goods or services below market cost to drive out competition, imposing barriers to entry or preventing the growth of competitors, and making a transaction subject to the acceptance of parties that have no connection with the transaction.

It also covers setting prices or terms that discriminate between customers or sellers of the same goods or services, imposing restrictions on the lease or contract for sale or trade of goods or services, and making supply of particular goods or services dependent upon the purchase of other goods or services from the supplier.

Also prohibited are imposing unfairly low purchase prices for the goods or services of marginalized service providers and producers such as farmers, fisherfolk, and MSMEs.

It is also unlawful to impose unfair purchase or selling price on competitors, customers, suppliers, or consumers; and to limit production, markets, or technical development to the prejudice of consumers.

But Mr. Bernabe stressed that it is not only the big players but SMEs too that may find themselves in a dominant position, and they must thus refrain from abusing their position as SMEs are not exempted from the provisions of the PCA.

But more important, he said, is that MSMEs should increase their knowledge to protect themselves and exert their rights.

"Kung kayo ay nasa-subject sa [If you are being subjected to] exploitative, abusive behavior please exercise your right and inform the PCC," he emphasized.

"Kung kayo po ay nakaka-experience ng ganito, lumapit po kayo sa amin … at puede po ninyong ikunsulta, isumbong, isangguni ang mga bagay na ito at para po kung kami ay mag-imbestiga at makita namin na ito'y dapat na ipagbawal ay mahihinto ang ganitong abusive, exploitative practice [If you experience this, you can come to us to consult, complain or raise these issues so we can investigate and if we see that it is illegal, put an end to such abusive, exploitative practice]," Mr. Bernabe concluded. (PhilExport)

Comments

Popular posts from this blog

Free dormitories eyed for Nueva Era students in LC, Batac

 Nueva Era mayor Aldrin Garvida By Dominic B. dela Cruz ( Staff Reporter) Nueva Era , Ilocos Norte—The municipal government here, headed by Nueva Era mayor Aldrin Garvida is planning to establish dormitories in the cities of Laoag and Batac that will exclusively cater to college students from the said cities. “Sapay la kuma ta maituloyen iti mabiit tay ar-arapaapen tayo ken iti munisipyo a maipatakderan kuma dagiti annak tayo a college students nga agbasbasa idiay siyudad iti Batac ken Laoag iti libre a dormitoryo a bukod da ngem inggana nga awan pay ket an-anusan mi paylaeng nga ibaklay kenni apo bise mayor iti pagbayad da iti kasera aggapu iti bukod mi a suweldo malaksid dagitay it-ited iti munisipyo ken iti barangay nga stipend da kada semester, ” Garvida said.    Garvida added that the proposed establishment of dormitories would be a big help to the students’ parents as this would shoulder the expenses of their children for rent and likewise they would feel more secured

Empanada festival: A celebration of good taste and good life

By Dominic B. dela Cruz & Leilanie G. Adriano Staff reporters BATAC CITY—If there is one thing Batac is truly proud of, it would be its famous empanada-making business that has nurtured its people over the years. Embracing a century-old culture and culinary tradition, Batac’s empanada claims to be the best and tastiest in the country with its distinctive Ilokano taste courtesy of its local ingredients: fresh grated papaya, mongo, chopped longganisa, and egg. The crispy orange wrapper and is made of rice flour that is deep-fried. The celebration of this city’s famous traditional fast food attracting locals and tourists elsewhere comes with the City Charter Day of Batac every 23 rd  of June. Every year, the City Government of Batac led by Mayor Jeffrey Jubal Nalupta commemorate the city’s charter day celebration to further promote its famous One-Town, One Product, the Batac empanada. Empanada City The Batac empanada festival has already become an annua

P29 per kilo rice sold to vulnerable groups in Ilocos region

BBM RICE. Residents buy rice for only PHP29 per kilo at the NIA compound in San Nicolas town, Ilocos Norte province on Sept. 13, 2024. The activity was under a nationwide pilot program of the government to sell quality and affordable rice initially to the vulnerable sectors. (Lei Adriano) San Nicolas , Ilocos Norte —Senior citizens, persons with disability, and solo parents availed of cheap rice sold at PHP29 per kilogram during the grand launching of the Bagong Bayaning Magsasaka (BBM) Rice held at the National Irrigation Administration compound in San Nicolas, Ilocos Norte province on Sept. 13, 2024. “ Maraming salamat Pangulong Ferdinand R. Marcos Jr. sa inyong pagmamahal sa Region 1 lalong-lalo na sa bayan namin sa San Nicolas,” said Violeta Pasion, a resident Brgy.   18 Bingao in this town. The low-priced grains were sourced from the National Irrigation Administration’s (NIA) contract farming with irrigators' association members in the province. Along with Pasion, Epi