Qdiscusstherulesonsuccessionofstates a 1 as to

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Unformatted text preview: the State policy regarding monopolies? A: The State shall regulate or prohibit monopolies when the public interest so requires. No combination in restraint of trade or unfair competition shall be allowed. (Sec. 19, Art. XII, 1987 Constitution) Q: What is meaning of the phrase “Unfair Foreign Competition And Trade Practices”? A: The phrase is not to be understood in a limited legal and technical sense but in the sense of anything that is harmful to Philippine enterprises. At the same time, however, the intention is not to protect local inefficiency. Nor is the intention to protect local industries from foreign competition at the expense of the consuming public. (Bernas, The 1987 Philippines Constitution: A Reviewer ‐ Primer, 2006) Q: What is a monopoly? A: A monopoly is a privilege or peculiar advantage vested in one or more persons or companies, consisting in the exclusive right (or power) to carry on a particular business or trade, manufacture a particular article, or control the sale of a particular commodity. (Agan, Jr. v. PIATCO, G.R. No. 155001, May 5, 2003) Q: What is the rationale behind the provision? A: The provision is a statement of public policy on monopolies and on combinations in restraint of trade. Section 19 is anti‐trust in history and spirit. It espouses competition. Only competition which is fair can release the creative forces of the market. Competition underlies the provision. The objective of anti‐trust law is ‘to assure a competitive economy based upon the belief that through competition producers will strive to satisfy consumer wants at the lowest price with the sacrifice of the fewest resources. Competition among producers allows consumers to bid for goods and services, and, thus matches their desires with society’s opportunity costs. Additionally, there is a reliance upon “the operation of the ‘market’ system (free enterprise) to decide what shall be produced, how resources shall be allocated in the production process, and to whom various products will be distributed. The market system relies on the consumer t...
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This document was uploaded on 03/12/2014.

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