The Anti-Dummy Law, formally known as Commonwealth Act No. 108, as amended, is a pivotal piece of legislation in the Philippines designed to safeguard national interest and security by restricting foreign influence and control over domestic businesses, particularly in areas of national and strategic importance. This law prohibits foreigners from intervening in the management, operation, administration, or control of any nationalized activity prescribed by the Philippine Constitution and specific laws. The Anti-Dummy Law ensures that certain areas of the economy, such as natural resources, public utilities, educational institutions, and advertising, remain under the control of Filipino citizens, reflecting the country's policy of economic nationalism.
Under this law, practices that circumvent the constitutional and statutory restrictions on foreign participation in certain business activities—through the use of Filipino citizens or entities as fronts or "dummies"—are penalized. The law is a protective measure, intended to prevent the evasion of the constitutional provisions that limit foreign ownership and control of businesses engaged in activities reserved for Filipinos.
Violations of the Anti-Dummy Law can lead to severe penalties, including imprisonment and fines, for both the foreign nationals involved and the Filipino citizens or entities acting as dummies. Furthermore, the law authorizes the seizure and forfeiture of properties acquired through such illegal practices.
The enforcement of the Anti-Dummy Law is crucial for maintaining the integrity of the Philippine economy and ensuring that Filipinos retain control over businesses and industries that are vital to national interest and security. It underscores the balance between welcoming foreign investment and participation in the economy while safeguarding areas that are deemed of critical importance to the country's sovereignty and development.
The application of the Anti-Dummy Law has evolved, particularly in light of the liberalization of certain sectors and the increasing globalization of the economy. However, the principle remains that the law serves as a bulwark against undue foreign control and influence, ensuring that the Philippine economy remains fundamentally in the hands of Filipinos. This law, thus, plays a significant role in the country's policy of economic self-reliance and is a testament to its commitment to national sovereignty and the promotion of Filipino entrepreneurship and control over its economic resources.