Publication: Fostering Competition in the Philippines: The Challenge of Restrictive Regulations
Date
2018-11
ISSN
Published
2018-11
Author(s)
World Bank Group
Abstract
The objective of this report is to
identify existing regulatory restraints to competition in
key sectors and the economy as a whole and use them to
design an effective competition policy for the Philippines.
The report builds on Product Market Regulation (PMR)
indicators and the WBG’s Markets and Competition Policy
Assessment Tool (MCPAT) applied to the Philippine markets to
(i) develop the main aspects of the advocacy role of the
Philippine Competition Commission (PCC) against current
market features; (ii) map regulatory restrictions to
competition and classify them according to their effects;
(iv) contextualize competition restraints within each sector
to offer a set of policy recommendations; and (v) quantify
the potential impact of a more pro-competitive regulatory
environment for the Philippines’ economy. As the country did
not have a competition law until 2015, the recently created
PCC faces a challenging environment in which to implement
its mandate. The two-year transitory period to start
enforcement, as well as the potential to grant broad
exemptions from the law under the forbearance clause, have
hindered the ability of the PCC to prevent anticompetitive
conduct of market players, either public or private. In this
context, the advocacy role of the PCC offers a critical
mechanism to address those regulatory conditions that may be
enabling anticompetitive behavior. Limited market
competition can stem from restrictive regulations or
discretionary application of the regulatory framework that
render entry and operation of new firms difficult. Ensuring
government policies and regulations do not generate barriers
to entry or distort the level playing field is necessary to
enhance private sector participation and unlock investment opportunities.
Link to Data Set
Citation
“World Bank Group. 2018. Fostering Competition in the Philippines: The Challenge of Restrictive Regulations. © World Bank, Washington, DC. http://hdl.handle.net/10986/31353 License: CC BY 3.0 IGO.”