The Philippine Competition Commission (PCC) said it has accepted a P1.5-million settlement proposal offered by the Philippine Association of Legitimate Service Contractors (PALSCON) to address potential anti-competitive agreements in the organization.
PCC said PALSCON opted to submit an undertaking to the Commission to correct its behavior after an investigation by the PCC Enforcement Office showed the group could be in violation of Section 14 (b)(2) of the Philippine Competition Act (PCA). The provision prohibits agreements among competitors that aim to limit competition, such as dividing the market based on sales, territory, product or service type, or other factors.
PCC said PALSCON’s Code of Ethics had the effect of limiting the competition among its members.
During the PCC Enforcement Office’s full administrative investigation in 2021, PALSCON requested to engage in settlement discussions pursuant to Section 2.17 of the PCC Rules of Procedure. The rules allow entities under investigation to offer a settlement to the Commission at any time during the investigation, but before the final decision is made.
After a series of negotiations, PALSCON submitted a Complete Revised Settlement Proposal on July 14, 2023, which the Commission approved on Oct. 5, 2023.
PALSCON has committed to pay the settlement amount of P1.55 million.
In addition, it committed that PALSCON board of directors and at least two senior officers of each PALSCON member will attend a competition law seminar to be organized by PCC.
PALSCON would also appoint a competition law compliance officer who will ensure compliance of PALSCON members with the PCA, PCC issuances, as well as attendance to competition law seminars by identified PALSCON officers.
Another commitment is for PALSCON to issue an acknowledgment recognizing their association’s inadvertent mistake or failure to properly communicate to its members the meaning of Article II, Section 3 of PALSCON’s Code of Ethics, which shall be published on PALSCON’s website for two years.
Lastly, PALSCON will revise its Code of Ethics, particularly, Article II, Section 3, to state: PALSCON shall not support, tolerate, or condone anti-competitive practices between and among its members, as well as agreements, conduct, policies or regulations which are anti-competitive in nature.
