The Philippine Competition Commission (PCC) and the Philippine Chamber of Commerce and Industry (PCCI) have signed a memorandum of understanding (MoU) to promote competition in the business community.
Signed during a virtual roundtable organized by the PCCI and the PCC on Wednesday, the MoU seeks to establish close cooperation between the two groups. It also aims to establish capacity-building programs to foster competition.
“Competition is a great equalizer in the ecosystem of the economy. It affords the consumer more choices from quality products while it protects, especially small businessmen, from anti-competition practices of dominant and large enterprises,” PCCI President Benedicto Yujuico said.
“A truly competitive market encourages efficiency and innovation, propelling the economy to higher growth rates,” he added.
Yujuico also said the PCCI remained committed to helping local businesses become more aware of Republic Act 10667, or the “Philippine Competition Act of 2015;” functions of the PCC; and importance of competition during the coronavirus disease 2019 (Covid-19) pandemic.
Meanwhile, PCC Chairman Arsenio Balisacan also raised the importance of competition during and after the pandemic, as well as several risks to the competition landscape.
According to him, the Philippines fares rather poorly in cross-country comparisons of domestic market restrictions and market concentration.
“[R]elative to other countries in East Asia and the Pacific region, the Philippines harbors a higher proportion of monopolies, duopolies and oligopolies in the manufacturing sector,” Balisacan said.
And “relative to other Asian economies, Philippine markets exhibit higher restrictions on competition, and restrictive state measures significantly contribute to this outcome,” he added.
Competition gives consumers better access to goods and services at lower prices and higher quality, according to the former socioeconomic planning secretary.
“Robust competition also spurs research and innovation, increases productivity, and ensures greater product variety. These effects, taken together, serve to improve growth prospects and overall welfare, especially of the poor,” Balisacan said.
He assured that the PCC would continue to advocate the use of the competition lens in the crafting of government interventions.