Competition commission accepts PALSCON's P1.5-M settlement offer

The Philippine Competition Commission (PCC) on Wednesday said it has accepted a P1.5-million settlement proposal from the Philippine Association of Legitimate Service Contractors (PALSCON) to take up anti-competitive concerns.

The PCC said it approved PALSCON’s Complete Revised Settlement proposal last Saturday, October 5, over a year after it was submitted on July 14, 2023. The antitrust watchdog said it requested to engage with PALSCON in settlement discussions in 2021.

In a post on its website, PALSCON acknowledged that a part of its Code of Ethics, “by inadvertent mistake or by failure to properly communicate,” has been understood to mean that its members are not allowed under any circumstances to compete with each other for clients and employees.

PALSCON describes itself as an association of legitimate service contractors that furthers the cause of the government and labor sectors by providing employment through sub-contracting activities.

The association has since committed to pay a settlement of P1,546,079.60, and have its board of directors and at least two senior officers of each member attend a competition law seminar which will be organized by the PCC.

It also committed to appoint a competition law compliance officer to ensure compliance with the Philippine Competition Act (PCA), and to revise Article II, Section 3 of its Code of Ethics, which will be published on its website for two years.

Upon checking the PALSCON website, a message popped up indicating a revision on Article II, Section 3 of its Code of Ethics, in line with efforts to promote free competition and maintain and advocate sound business practices among members.

“PALSCON does not support, tolerate or condone anti-competitive practices between its members. PALSCON members shall not propose, or support agreements, conduct, policies, or regulations which are anti-competitive in nature,” the new article read.

“This settlement marks a crucial step towards fostering a more competitive and transparent environment within the industry,” PALSCON national president Armando Gutierrez Jr. was quoted as saying in a PCC statement.

“We hope it will encourage businesses to adopt fair practices and share their expertise for the benefit of all,” he added.

For its part, the PCC said it encourages voluntary compliance with the PCA and other competition laws by making non-adversarial remedies available to the parties.

“By addressing unfair practices, this settlement forms part of the Commission’s holistic approach towards building a culture of competition in the country,” PCC chairperson Michael Aguinaldo said.

“We hope that eventually, associations and business groups become more wary of how their guiding principles create advantages or disadvantages that affect the level playing field,” he added. — BM, GMA Integrated News