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Real Talk: Suing Filipino Monopolies/Oligopolies Can NEVER Improve Their Services

ACLEx

The ASEAN 2026 will be held in Metro Manila on November 16-18, 2026. I was thinking about a stupid Facebook comment (I decided to edit it for easier reading) that I had (and as always, I will not reveal the person's real identity; let's just call him Boomer Man with Shades). This is what he said that made me laugh after I got into an argument:
Regarding monopolies, if you feel it is unfair, we have the Consumer Act of the Philippines. Feel free to go to court and file your complaint. There is no need to change the Constitution.

This comment is, again, typical boomer ignorance. It should be funny that several boomer Filipinos typing their silly comments are using imported smartphones. Now, it's time to do a post to answer this claim: if I feel it's unfair, there's the Consumer Act of the Philippines. But here's the introduction of the law that was introduced on April 13, 1992:

Article 1. Short Title. – This Act shall be known as the "Consumer Act of the Philippines."

Article 2. Declaration of Basic Policy. – It is the policy of the State to protect the interests of the consumer, promote his general welfare and to establish standards of conduct for business and industry. Towards this end, the State shall implement measures to achieve the following objectives:

a) protection against hazards to health and safety;

b) protection against deceptive, unfair and unconscionable sales acts and practices;

c) provision of information and education to facilitate sound choice and the proper exercise of rights by the consumer;

d) provision of adequate rights and means of redress; and

e) involvement of consumer representatives in the formulation of social and economic policies.

Article 3. Construction. – The best interest of the consumer shall be considered in the interpretation and implementation of the provisions of this Act, including its implementing rules and regulations. 

What we must understand is that the Consumer Act of the Philippines isn't even hard-framed into Article XII of the 1987 Constitution of the Philippines. However, Article XII, sections 2, 10, 11, and 14 are indeed severe bottlenecks. In fact, that's why Article XVII is there because no constitution is ever perfect. 

Can legal action truly fix the problem, such as fines or even bringing them to court?

In fact, in 2019, Atty. Neri Colmenares even proposed that fines should be given to ISPs that fail to provide proper services. Here's an excerpt from the Inquirer:

“Order payment of fines, in an amount which is commensurate to the damage and prejudice to the consumers; refer the case to the Philippine Competition Commission for determination of anti-competitive behavior and abuse of market by Globe and PLDT and other ISPs,” Colmenares said.

Unfortunately, what Colmenares is recommending is a band-aid solution. The reason is that supply and demand are fundamental forces that you can never alter. One can always argue that Venezuela is just a victim of American oppression. However, the reality is that Venezuela is a cautionary tale of what happens when you try to legislate away the laws of economics. Venezuela performed a lot of ridiculous steps such as raising minimum wages by ridiculous amounts and imposing price controls, only for it to fail spectacularly because of its pride and protectionism. 

The truth is that even if Colmenares hypothetically got the law passed—bottlenecks are an undeniable reality. We need to look into this fundamental truth that Thomas Sowell has defended. Competition will do a more effective job than government in protecting its consumers. The government should allow fair competition, not shield local businesses from competition entirely. I don't need to get a PhD in economics or business administration to understand that! In fact, people like the late Lee Kuan Yew, Mahathir Mohammad, the late Nguyen Duy Cung aka Do Muoi, and Deng Xiaoping all understood the power of competition. It should be strange that Sowell is hated by Communist hippies while Vietnam and China actually took heed of that truth.

The reality is always grounded in supply and demand. There are too few Internet service providers vs. there are Filipinos. Having a duopoly and just adding a third telco or Starlink can barely meet the needs of an archipelago. If we think about it, how can so few companies cater to too many Filipinos? Sure, they have a workforce, but that workforce, even nationwide, couldn't really truly cater to millions of Filipinos who need the services. That's why these services are of poor quality and expensive. The companies are basically overstressed (leading to poor quality), and there are too few of them to meet the high demand (explaining high prices).

Instead of thinking about suing PLDT and Globe (and good luck trying to win the lawsuit)—the real problem has been scarcity of supply and overwhelming demand. That's why I was thankful for the passing of the Public Service Act of 2022. Even longtime Duterte critic and Leni Robredo supporter, Andrew J. Masigan, admitted it was an overdue law.

Right now, even without charter change (which am for)—any amendment of the 1987 Constitution to rewrite Article XII to get rid of Sections 2, 10, 11, and 14 entirely because such laws should be in legislation instead. 

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