Although the government has adopted an economic reform policy characterized by trade liberalization, deregulation and privatization since the late 1980’s, economic transformation did not materialize. Low investments, a small manufacturing sector, and high degree of monopolization typify the Philippine economy. Various studies attribute this phenomenon to the lack of a "culture of competition” in the country. An effort to address this issue has been initiated by the current administration with the signing of Executive Order 45 creating the Office For Competition under the Department of Justice. E.O. 45, however, is obviously not a comprehensive and developed anti-trust policy. The lack of specific definitions on the terms ‘competition’, firm dominance, anti-competitive behavior and practices, etc., and the lack of specific provisions on mergers and acquisitions may create arbitrariness on future legal decisions leading to an unfavorable business environment. This paper presents the importance of a comprehensive Competition Policy and the rationale for the enactment of a Competition Law, suggests elements needed to formulate an effective Competition Law, and seeks to foster discussion among policymakers by surfacing issues that would impact on reducing the gap between policy and implementation.