THE Philippine Competition Commission’s (PCC) rules on its leniency program will take effect later this month, after the final version was published last week.
PCC Commissioner Johannes Benjamin R. Bernabe said the new rules were approved by its board, and will be effective 20 days after its Dec. 29 publication in two local newspapers.
“Hopefully, once people become familiar with the leniency rules, they will come forward,” Mr. Bernabe said in a phone interview last week.
The PCC is pinning hopes on its leniency program to speed up its preliminary inquiries and investigations on cartels.
Under the leniency program, the PCC offers whistle-blowers immunity from suit or reduction in fines in exchange for information and evidence about the reported anti-competitive agreement.
However, the ring leader of a cartel can only be granted a reduction of administrative penalties but never immunity to criminal liability.
Before any adjudication can start, applicants for the program will first have to apply for a marker which is seen to encourage cartel participants to compete against each other in providing information.
“A marker is necessary to protect an entity’s place in the queue for applicants under the Leniency Program and allows the entity an initial period of thirty (30) days within which to gather and submit information and evidence,” read the PCC-signed version posted on its website.
The applicant of the marker system must submit information on the alleged anti-competitive agreement; on the affected product(s); on the affected territory; the duration of the alleged anti-competitive agreement; and the reasons why the entity is eligible under the leniency program.
The PCC will also require information on the nature of the alleged anti-competitive agreement and information on any past leniency applications with the PCC and other competition authorities outside the Philippines in relation to the alleged anti-competitive agreement.
The PCC noted that the grant of leniency benefits is also conditional, hinged on the “continuing, full, and genuine cooperation” with the finality that has been reached in any and all cases initiated by the PCC in relation to the reported cartel.
Those found violating terms with the PCC will be stripped of the grant of a full immunity or declined a lower fine.
Those who will be found to have provided false, misleading or malicious information, data or documents will be fined with an amount not less than the penalty imposed on the violation of the entity complained of.
The leniency program is provided under Republic Act 10667 or the Philippine Competition Act of 2015. — Janina C. Lim

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