The Philippine Competition Commission expects to conclude the inquiry on the alleged anti-competition case filed against the Cement Manufacturers Association of the Philippines within the first semester.
Cement companies found guilty of anti-competitive behavior or found behaving in a cartel-like manner will be slapped fines and administrative penalties, said Commission chairman Arsensio Balisacan.
The body has 90 days to investigate the case from the time it found reasonable grounds to proceed with the probe.
It will conduct a more thorough probe and acquire more evidence on the case and if it finds there substantive ground, Cemap will be charged, Balisacan said.
First offense under the law is meted P100 million in fine while the second one is penalized P250 million.
Balisacan said the body could impose other remedies to prevent perpetrators from repeating the same offense.
“Apart from merger controls, the Commission can investigate anti-competitive conduct of industry. This is a game changer as the business community is not used to this. This shows we are very serious in leveling the playing field so the benefits of growth can redound to small and medium enterprises,” he said.
The investigation is a test case for the competition law on the cement industry, which has faced similar queries in other countries in Africa and Latin America.
The commission’s investigation followed a complaint filed by Laban Konsyumer against Ernesto Ordoñez in his capacity as president of Cemap, LaFargeHolcim Philippines Inc. and Republic Cement and Building Materials Inc. for allegedly violating the provisions of the Philippine Competition Act by engaging in anti-competitive agreements.
Among the behaviors the consumer group noted from the cement groups are restricting competition as to price manipulation, imposing barriers to entry and committing acts that prevent competitors from growing within the market.