Court Moves to Block Foreign Competition

Court moves to block competition

All countries regulate business operations within their borders. Some of those regulations are at times stricter with foreign-based corporations than domestic ones. After a recent court ruling in the Philippines, those restrictions include blocking foreign competition in a particular industry.

In June 2013, the Court of Appeals in the Philippines supported a District Court decision in January that FedEx could not operate as an international air freight forwarding service in the country. The court stated that the country’s constitution prevents a foreign-controlled entity from operating a public utility, and that international air freight forwarding business is a public utility.

Until a final ruling on the case is made in the Supreme Court, the Civil Aviation Board will continue to allow FedEx to provide air freight services in the country.

Do you think the international air freight forwarding business should be open to foreign competition in the Philippines?

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1 Comment

  1. Anonymous

     /  October 24, 2013

    Why force something on someone when there constitution prevents it?

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