The Constitution under Section 19 of Article XIIprovides that: “The State shall regulate or prohibit monopolies when the publicinterest so requires. No combinations in restraint of trade or unfaircompetition shall be allowed.
The aforementionedconstitutional provision not only recognizes the danger that monopolies pose onthe public interest, but also contemplates that monopolies emerging, throughrestraint of trade or unfair competition, must be struck down in theirincipiency.
It is obviously inaccordance with the aforecited constitutional principles that the creation ofthe Asset Privatization Trust (APT) and the Committee on Privatization (COP)clearly provided that the privatization effort should “give primacy to theprivate sector in undertaking economic activities under a climate of faircompetition. Sale to investors which would result in undue concentration ofeconomic power in the hands of the few groups or individuals shall bediscouraged.”
The bill was filed duringthe 9th Congress in reaction to observation of industries beingcartelized when few suppliers of a vital product conspire to fix prices to thedetriment of the public. In very sensitive public utilities, small operators,who collectively may be able to provide better and geographicallyfarther-reaching service, are unable to do so because of undue restraintsimposed by the giants of the sector. In protecting their turf, the giants andthe virtual monopolies place public interest below the objective of protectingmarket share and profitability.Click here to read on..
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