The House of Representatives has approved on second reading the anti-trust bill, a priority legislative measure of the Aquino government that will prevent building of business monopolies and cartels.

Authored by Cagayan Rep. Jack Enrile, House Bill 4835 was unanimously approved on second reading during Monday’s session.

Deputy Speaker Lorenzo Tanada III said HB 4835 will provide a framework for business competition while seek to curtail monopoly abuse in industries.

“Will this competition policy prevent the creation of monopolies? No it will not. It will, however, prevent the abuse of monopoly power should these monopolists dare exercise it,” said Tañada, who was among the principal sponsors of the bill.

HB 4853 penalizes anti-competitive agreements and mergers and abuse of dominant position.

The legislative proposal was approved in the wake of reports that two of the country’s top telecommunication firms are set to form a merger. A congressional investigation is being conducted on the issue.

Tanada said that recent mergers and acquisition of well-known corporations, as well as allegations of formation of cartels in basic commodities like food and of bid rigging, all highlight the need for a comprehensive law on competition.

He pointed out that the passage of this law is essential since our Constitution provides that the “State shall regulate or prohibit monopolies when the public interest so requires” and that “[n]o combinations in restraint of trade or unfair competition shall be allowed.

The hard work of the Congresspersons in the Committee on Trade and Industry and the Committee on Economic Affairs, their technical staff, the secretariats of the committees, and the officials of relevant line agencies in the Executive Branch, all contributed to the passage of what the Deputy Speaker believes is a version of the bill that lives up to recognized international standards.