REPUBLIC ACT No. 1956
AN ACT AMENDING ARTICLE ONE HUNDRED AND EIGHTY-SIX OF THE REVISED PENAL CODE, CONCERNING MONOPOLIES AND COMBINATIONS IN RESTRAINT OF TRADE.
Section 1. Article one hundred and eighty-six of the Revised Penal Code is amended to read as follows:
"Art. 186. Monopolies and combinations in restraint of trade. The penalty of prison correctional in its minimum period of a fine ranging from two hundred to six thousand pesos, or both, shall be imposed upon:
"1. Any person who shall enter into any contract or agreement or shall take part in any conspiracy or combination in the form of a trust or otherwise, in restraint of trade or commerce or to prevent by artificial means free competition in the market;
"2. Any person who shall monopolize any merchandise or object of trade or commerce, or shall combine with any other person or persons to monopolize said merchandise or object in order to alter the price thereof by spreading false rumors or making use of any other artifice to...
Summary of Republic Act No. 1956
Monopolies and Combinations in Restraint of Trade
- Prohibits and penalizes the following acts:
• Entering into contracts, agreements, conspiracies or combinations in restraint of trade or to prevent free competition in the market. (Section 1.1)
• Monopolizing merchandise or objects of trade, or combining with others to monopolize them in order to alter prices by spreading false rumors or using other means to restrain free competition. (Section 1.2)
• For manufacturers, producers, processors, importers, wholesalers or retailers, combining, conspiring or agreeing in any manner with others engaged in similar activities or with others not similarly engaged, for the purpose of making transactions prejudicial to lawful commerce or increasing market prices in the Philippines. (Section 1.3)
Penalties
• Prison correctional in its minimum period or a fine ranging from 200 to 6,000 pesos, or both. (Section 1)
• If the offense affects food substances, motor fuel, lubricants, or other prime necessity articles, the penalty is prison mayor in its minimum and medium periods, with the initial steps toward carrying out the combination being sufficient for imposition. (Section 1)
Forfeiture
• Any property possessed under any prohibited contract or combination shall be forfeited to the Philippine government. (Section 1)
Corporate Liability
• If the offense is committed by a corporation or association, the president, directors, managers, agents or representatives in the Philippines who knowingly permitted or failed to prevent the offense shall be held liable as principals. (Section 1)
