PCA

Question 1

What is the RA No. for PCA

Answer 1

RA NO 10667

Question 2

True or False
S1: Rules of PCA apply to any entity engaged in trade, industry or commerce in the Republic of the Philippines or in international trade, industry or commerce having direct, substantial and reasonably foreseeable effects in the Philippines.
S2: Includes also those that result from acts done outside the territory of Philippines

Answer 2

S1 and S2 True

Question 3

T or F
Rules of PCA shall not apply to the combinations or activities of workers or employees nor to agreements or arrangements with their employees when such combinations, activities or arrangements are designed solely to facilitate collective bargaining in respect of conditions of employment

Answer 3

TRUE

Question 4

It refers to the purchase or transfer of securities or assets through contract or other means for the purpose of control

Answer 4

Acquisition

Question 5

Control can be obtained by

s1: 1 entity of the whole or part of another
s2: 2 or more entities over another
s3: 1 or more entities over one or more entities

Answer 5

ALL ARE CORRECT

Question 6

Identify the answer and incorrect phrase.

Refers to any type or form of contract, arrangement, understanding, collective recommendation, or concerted action, whether formal or informal, explicit or tacit, written only.

Answer 6

Agreement and Can be oral also

Question 7

Refers to any type or form of undertaking, collective recommendation, independent or concerted action or practice, whether formal or informal

Answer 7

Conduct

Question 8

Refers to Philippine Competition Commission created under this Act

Answer 8

Commission

Question 9

Refers to information concerns or relates to the operations, production, sales, shipments, purchases, transfers, identification of customers, inventories, or amount or source of any income, profit, losses, expenditures, which are not generally known to the public or to other persons who can obtain economic value from its disclosure or use, or is liable to cause serious harm to the person who provided it, or from whom it originates and is the subject of efforts that are reasonable under the circumstances to maintain secrecy.

Answer 9

Confidential Business Information

Question 10

refers to the ability to substantially influence or direct the actions or decisions of an entity, whether by contract, agency or otherwise;

Answer 10

Control

Question 11

refers to a position of economic strength that an entity or entities hold which makes it capable of controlling the relevant market independently from any or a combination of the following:
competitors, customers, suppliers, or consumers

Answer 11

Dominant Position

Question 12

refers to any person, natural or juridical, sole proprietorship, partnership, combination or association in any form, whether incorporated or not, domestic or foreign, including those owned or controlled by the government, engaged directly or indirectly in any economic activity;

Answer 12

ENTITY

Question 13

refers to a business arrangement whereby an entity or group of entities contribute capital, services, assets, or a combination of any or all of the foregoing, to undertake an investment activity or a specific project, where each entity shall have the right to direct and govern the policies in connection therewith, with the intention to share both profits and risks and losses subject to agreement by the entities

Answer 13

Joint Venture

Question 14

refers to the group of goods or services that are sufficiently interchangeable or substitutable and the object of competition, and the geographic area where said goods or services are offered;

Answer 14

Market

Question 15

refers to the joining of two (2) or more entities into an existing entity or to form a new entity, including joint ventures

Answer 15

Merger

Question 16

refers to the market in which a particular good or service is sold and which is a combination of the relevant product market and the relevant geographic market

Answer 16

Relevant Market

Question 17

comprises all those goods and/or services which are regarded as interchangeable or substitutable by the consumer or the customer, by reason of the goods and/or services’ characteristics, their prices, and their intended use;

Answer 17

Relevant Product Market

Question 18

comprises the area in which the entity concerned is involved in the supply and demand of goods and services, in which the conditions of competition are sufficiently homogenous and which can be distinguished from neighboring areas because the conditions of competition are different in those area

Answer 18

Relevant Geographic Market

Question 19

is the juridical entity that, directly or indirectly, controls a party to the transaction, and is not controlled by any other entity.

Answer 19

Ultimate Parent Entity

Question 20

Identify the missing word

(a) The following agreements, between or among competitors, are ______ prohibited:

(1) ___________ _________as to price, or components thereof, or other terms of trade; AKA PRICE FIXING

(2) ______ the price at an auction or in any form of bidding, including cover bidding, bid suppression, bid rotation and market allocation, and other analogous practices of bid manipulation. Bid Rigging

Answer 20

per se
restricting competition
fixing

Question 21

Supply the missing information

b) The following agreements, between or among competitors, which have the object or effect of substantially ________, __________, or _______ competition shall be prohibited:

(1) Setting, limiting, or controlling production, markets, technical development, or investment; -OUPUT LIMITATIONS

(2) Dividing or sharing the market, whether by volume of sales or purchases, territory, type of goods or services, buyers or sellers, or any other means. -Market Allocation

Answer 21

preventing, restricting or lessening

Question 22

(b) The following agreements, between or among competitors, which have the object or effect of substantially preventing, restricting, or lessening competition shall be prohibited:

(1) ______, ______or _____ production, markets, technical development, or investment;

(2)______ or ____ the market, whether by volume of sales or purchases, territory, type of goods or services, buyers or sellers, or any other means.

Answer 22

setting, limiting, controlling

dividing, sharing

Question 23

Those which contribute to improving the production or distribution of goods and services or to promoting technical or economic progress, while allowing consumers a fair share of the resulting benefits is still deemed violation of this act.

Answer 23

False, may not deemed violation.

Question 24

NOT CONSIDERED COMPETITORS

Answer 24

entities that control,
are controlled by,
or are under common control with another entity or entities,
have common economic interests, and
are not otherwise able to decide or act independently of each other

Question 25

Abuse of Dominant Position

Prohibited
(1) Selling goods or services below ____ with the object of driving competition out of the relevant market. PREDATOR PRICING

Answer 25

COST

Question 26

Abuse of DP
Prohibited Acts

________ to entry or committing acts that prevent competitors from growing within the market in an anti-competitive manner

Answer 26

Imposing barriers

Question 27

Not prohibited in Abuse of DP
Those that develop in the market as a result of or arising from a inferior product or process, business acumen, or legal rights or laws;

Identify the wrong word

Answer 27

inferior- SUPERIOR

Question 28

Abused dominant position
Prohibited

Making a transaction subject to______ by the other parties of other obligations which, by their nature or according to commercial usage, have no connection with the transaction;

Answer 28

acceptance

Question 29

Prohibited in Abuse of DP

Setting prices or other terms or conditions that _________ unreasonably between customers or sellers of the same goods or services, where such customers or sellers are contemporaneously trading on similar terms and conditions, where the effect may be to lessen competition substantially

Answer 29

discriminate

Question 30

Following shall be considered permissible price differentials, except:

i. Socialized pricing for the less fortunate sector of the economy;

ii. Price differentials which unreasonably or approximately reflect differences in the cost of manufacture, sale, or delivery resulting from differing methods, technical conditions, or quantities in which the goods or services are sold or delivered to the buyers or sellers;

iii. Price differential or terms of sale offered in response to the in competition price of payments, services, or changes in the facilities furnished by a competitor; and

iv. Price changes in response to changing market conditions, marketability of goods or services, or volume.

Answer 30

II and III
reasonably; competitive

Question 31

Prohibited Abused DP

Identify if T or F
Imposing restrictions on the lease or contract for sale or trade of goods or services concerning where, to whom, or in what forms goods or services may be sold or traded, such as:

i. fixing prices, or

ii. giving preferential discounts or rebate upon such price, or

iii. imposing conditions not to deal with competing entities,

where the object or effect of the restrictions is to prevent, restrict or lessen competition substantially

Answer 31

ALL ARE TRUE

Question 32

Prohibited or Not?

Permissible franchising, licensing, exclusive merchandising, or exclusive distributorship agreements, such as those which give each party the right to unilaterally terminate the agreement, unless found by the Commission to have substantial anticompetitive effect

Answer 32

Not Prohibited unless unlawful

Question 33

Prohibited or not?

Agreements ​protecting ​intellectual ​property ​rights,
confidential information, or trade secrets;

Answer 33

Not Prohibited unless unlawful

Question 34

Prohibited because of Abused DP or Not? Also known as? Making supply of particular goods or services dependent upon the purchase of other goods or services from the supplier which have no direct connection with the main goods or services to be supplied;

Answer 34

Prohibited, Tied Up Product example ay yung xray at xerox machine ni atty nicko

Question 35

Directly or indirectly imposing unfairly low purchase prices for the goods or services of, among others, marginalized agricultural producers, fisherfolk, micro-, small-, medium-scaled enterprises, and other marginalized service providers and producers;

Prohibited the Abused DP? or not?

Answer 35

YES, Abusado ka talaga

Question 36

Directly or indirectly imposing unfairly low purchase prices for the goods or services of, among others, marginalized agricultural producers, fisherfolk, micro-, small-, medium-scaled enterprises, and other marginalized service providers and producers;

Prohibit Abuse of DP

Answer 36

True

Question 37

S1: Directly or indirectly imposing unfair purchase or selling price on their competitors, customers, suppliers, or consumers,

S2: prices that develop in the market as a result of or due to a superior product or process, business acumen or legal rights or laws shall be considered unfair prices

Determine if it prohibits abused dp?

Answer 37

YES No S2 …. legal rights or laws shall not be considered unfair prices.

Question 38

Limiting production, markets, or technical development to the prejudice of consumers,

Answer 38

Abused DP

Question 39

b) Nothing in the Act or these Rules shall be construed or interpreted as a prohibition on having a dominant position in a relevant market, or on acquiring, maintaining, and increasing market share through legitimate means that do not substantially prevent, restrict, or lessen competition.

(c) Any conduct which contributes to improving production or distribution of goods or services within the relevant market, or promoting technical and economic progress, while allowing consumers a fair share of the resulting benefit may not necessarily be considered an abuse of dominant position.​

(d) The foregoing shall not constrain the Commission or the relevant regulator from pursuing measures that would promote fair competition or more competition as provided in the Act.

Answer 39

Rules in Abused DP of RA 10667

Question 40

concerned entity or entities invoking the exception shall clearly establish to the Commission’s satisfaction, that the barrier to entry or anti-competitive act is an ____ and _____of the superior product or process, business acumen, or legal rights or laws.

Answer 40

indispensable; natural result

Question 41

True or False? Commission, motu proprio or upon notification as provided under these Rules, shall have the power to review mergers and acquisitions having a direct, substantial and reasonably foreseeable effect on trade, industry, government or commerce in the Philippines,

Answer 41

False hindi kasali ang government

Question 42

In conducting this review, the Commission shall:

(1) Assess whether a proposed merger or acquisition is likely to substantially prevent, restrict, or increase competition in the relevant market or in the market for goods and services as may be determined by the Commission; and

(2) Take into account any substantiated efficiencies put forward by the parties to the proposed merger or acquisition, which are likely to arise from the transaction.

Answer 42

S1 false increase; lessen

Question 43

In evaluating the competitive effects of a merger or acquisition, the Commission shall endeavor to compare the competitive conditions that would likely result from the merger or acquisition with the conditions that would likely have prevailed without the merger or acquisition.

Answer 43

true

Question 44

In its evaluation, the Commission may consider, on a case-to-case basis, the broad range of possible factual contexts and the specific competitive effects that may arise in different transactions, such as:

(1) the structure of the relevant markets concerned;

(2) the market position of the entities concerned;

(3) the actual or potential competition from entities within or outside of the relevant market;

(4) the alternatives available to suppliers and users, and their access to supplies or markets;

(5) any legal or other barriers to entry.

Answer 44

ALL ARE TRUE

Question 45

Parties to a merger or acquisition that satisfy the thresholds in Section 3 of this Rule are required to _______ the Commission before the execution of the definitive agreements relating to the transaction.

Answer 45

notify

Question 46

If notice to the Commission is required for a merger or acquisition, then all acquiring and acquired pre-acquisition ultimate parent entities or any entity authorized by the ultimate parent entity to file notification on its behalf must each submit a _________ (the “Form”) and comply with the procedure set forth in Section 5 of this Rule. The parties shall not consummate the transaction before the expiration of the relevant periods provided in this Rule.

Answer 46

Notification Form

Question 47

In formation of a ____ ____ shall be deemed the acquired entity.

Answer 47

JV

Question 48

In formation of JV, contributing entities, shall be deemed

Answer 48

acquiring entities

Question 49

Parties to a merger or acquisition are required to provide notification when:

(a) The aggregate annual gross revenues in, into or from the Philippines, or value of the assets in the Philippines of the ultimate parent entity of at least one of the acquiring or acquired entities, including that of all entities that the ultimate parent entity controls, directly or indirectly, exceeds One Billion Pesos (1B).

Answer 49

True

Question 50

Parties to a merger or acquisition are required to provide notification when:

Answer 50

(b) The value of the transaction exceeds One Billion Pesos (PhP1,000,000,000.00), as determined in subsections (1), (2), (3) or (4), as the case may be.

(1) With respect to a proposed merger or acquisition of assets in the
Philippines if either

i. the aggregate value of the assets in the Philippines being acquired in the proposed transaction exceeds One Billion
Pesos (PhP1,000,000,000.00); or

ii. the gross revenues generated in the Philippines by assets acquired in the Philippines exceed One Billion Pesos (PhP1,000,000,000.00).

Question 51

The value of the transaction exceeds One Billion Pesos (PhP1,000,000,000.00), as determined in subsections

Answer 51

(2) With respect to a proposed merger or acquisition of assets outside the Philippines, if

i. the aggregate value of the assets in the Philippines of the acquiring entity exceeds One Billion Pesos
(PhP1,000,000,000.00); and

ii. the gross revenues generated in or into the Philippines by those assets acquired outside the Philippines exceed One Billion Pesos (PhP1,000,000,000.00).

Question 52

b) The value of the transaction exceeds One Billion Pesos (PhP1,000,000,000.00), as determined in subsections (1), (2), (3) or (4), as the case may be.

Answer 52

3) With respect to a proposed merger or acquisition of assets inside and outside the Philippines, if

i. the aggregate value of the assets in the Philippines of the acquiring entity exceeds One Billion Pesos
(PhP1,000,000,000.00); and

ii. the aggregate gross revenues generated in or into the Philippines by assets acquired in the Philippines and any assets acquired outside the Philippines collectively exceed One Billion Pesos (PhP1,000,000,000.00).

Question 53

With respect to a proposed acquisition of (i) voting shares of a corporation or of (ii) an interest in a non-corporate entity

i. If the aggregate value of the assets in the Philippines that are owned by the corporation or non-corporate entity or by entities it controls, other than assets that are shares of any of those corporations, exceed One Billion Pesos
(PhP1,000,000,000.00); or

ii. The gross revenues from sales in, into, or from the Philippines of the corporation or non-corporate entity or by entities it controls, other than assets that are shares of any of

Answer 53

those ​corporations, ​exceed ​One ​Billion ​Pesos
(PhP1,000,000,000.00);

Question 54

Parties to a merger or acquisition are required to provide notification when:

Answer 54

as a result of the proposed acquisition of the voting shares of a corporation, the entity or entities acquiring the shares, together with their affiliates, would own voting shares of the corporation that, in the aggregate, carry more than the following percentages of the votes attached to all the corporation’s outstanding voting shares:

Question 55

Thirty-five percent (35%), or

II. Fifty percent (50%), if the entity or entities already own more than the percentage set out in subsection I above, as the case may be, before the proposed acquisition;

or

B. as a result of the proposed acquisition of an interest in a non-corporate entity, the entity or entities acquiring the interest, together with their affiliates, would hold an aggregate interest in the non-corporate entity that entitles the entity or entities to receive more than the following percentages of the profits of the noncorporate entity or assets of that non-corporate entity on its dissolution:

Thirty-five percent (35%), or

II. Fifty percent (50%), if the entity or entities acquiring the interest are already entitled to receive more than the percentage set out in subsection I immediately above before the proposed acquisition.

Answer 55

ALL ARE TRUE

Question 56

Where an entity has already exceeded the 35% threshold for an acquisition of voting shares, or the 35% threshold for an acquisition of an interest in a non-corporate entity, ______ _____
will be required if the same entity will exceed 50% threshold after making a further acquisition of either voting shares or an interest in a non-corporate entity.

Answer 56

another notification

Question 57

In a notifiable joint venture transaction, an acquiring entity shall be subject to the notification requirements if either

i) the aggregate value of the assets that will be combined in the Philippines or contributed into the proposed joint venture exceeds One Billion Pesos (PhP1,000,000,000.00) or

(ii) the gross revenues generated in the Philippines by assets to be combined in the Philippines or contributed into the proposed joint venture exceed One Billion Pesos (PhP1,000,000,000.00)

Answer 57

TRUE TRUE

Question 58

determining the assets of the joint venture, the following shall be included:

Answer 58

1) All assets which any entity contributing to the formation of the joint venture has agreed to transfer, or for which agreements have been secured for the joint venture to obtain at any time, whether or not such entity is subject to the requirements of the act; and

2) Any amount of credit or any obligations of the joint venture which any entity contributing to the formation has agreed to extend or guarantee, at any time.

Question 59

A ____or ____consisting of successive transactions, or acquisition of parts of one or more entities, which shall take place within a one-year period between the same parties, or any entity they control or are controlled by or are under common control with another entity or entities, shall be treated as _________.

Answer 59

merger, acquisition, one transaction

Question 60

S1: If a binding preliminary agreement provides for such successive transactions or acquisition of parts, the entities shall not provide notification on the basis of such preliminary agreement.

S2: If there is no binding preliminary agreement, notification shall be made when the parties execute the agreement relating to the last transaction which, when taken together with the preceding transactions, satisfies the thresholds under this Section.

Answer 60

S1 false- shall not provide/ shall provide

Question 61

(f) For purposes of calculating notification thresholds:

1) The aggregate value of assets in the Philippines shall be as stated on the first regularly prepared balance sheet or the most recent audited financial statements in which those assets are accounted for.

2) The gross revenues from sales of an entity shall be the amount stated on the first regularly prepared annual statement of income and expense of that entity.

TRUE OR FALSE

Answer 61

Both are false- FIRST/LAST

Question 62

A transaction that meets the thresholds and does not comply with the notification requirements and waiting periods set out in Section 5 shall be considered _____ and will subject the parties to an administrative fine of one percent ___ to five percent ____of the value of the transaction.

Answer 62

VOID, 1-5%

Question 63

In the case of a merger or acquisition of banks, banking institutions, building and loan associations, trust companies, insurance companies, public utilities, educational institutions, and other special corporations governed by special laws, a favorable or no-objection ruling by the Commission shall not be construed as dispensing with the requirement for a favorable recommendation by the appropriate government agency under Section 79 of the Corporation Code of the Philippines.​

Answer 63

TRUE

Question 64

(i) A favorable recommendation by a governmental agency with a competition mandate shall give rise to a disputable presumption that the proposed merger or acquisition is not violative of the Act or these Rules

Answer 64

TRUE

Question 65

Prior to filing a notification pursuant to this Rule, parties to a proposed merger or acquisition that are required to notify may inform the Commission of their proposed merger or acquisition and request a prenotification consultation with the staff of the Commission.

Answer 65

TRUE

Question 66

To request a meeting, the parties must provide the following information in writing:
​
(1) the names and business contact information of the entities concerned;

(2) the type of transaction; and

(3) the markets covered or lines of businesses by the proposed merger or acquisition.

Answer 66

ALL ARE TRUE

Question 67

During such pre-notification consultations, the parties may seek nonbinding advice on the specific information that is not required to be in the notification.

Answer 67

FALSE NOT REQUIRED/ required

Question 68

a) Each party to a merger or acquisition required to give notification to the Commission shall submit the Notification Form and pay such applicable fees as may be determined by the Commission. An electronic copy of the Form and a scanned copy of the certification referred to in subparagraph (b) of this Section, contained in a secure electronic storage device, shall likewise be submitted to the Commission, simultaneous with the filing of the aforementioned hard and soft copy.

Answer 68

FALSE- Hardcopy only

Question 69

b) The Form must be signed by a general partner of a partnership, an officer or director of a corporation, or in the case of a natural person, the natural person or his/her legal representative, and certified that the contents of the Form are true and accurate of their own personal knowledge and/or based on authentic records. In all cases, the certifying individual must possess actual authority to make the certification on behalf of the entity filing the notification.

(c) The parties may notify, on the basis of a binding preliminary agreement in any form, such as a memorandum of agreement, term sheet, or letter of intent. Each of the acquired and acquiring entities must submit an affidavit with their Forms, attesting to the fact that a binding preliminary agreement has been executed and that each party has an intention of completing the proposed transaction in good faith.

(d) Both the certification and the affidavit must be notarized or otherwise void.

Answer 69

TRUE
TRUE
FALSE- void/ authenticated

Question 70

Except as described below, the waiting period begins after all notifying entities have filed their respective Forms, together with the corresponding certifications and affidavits, and have been notified by the Commission that the Forms are complete.

(1) In voting securities acquisitions, such as tender offers, third party and open market transactions, in which the acquiring entity proposes to buy voting securities from shareholders of the acquired entity, rather than from the entity itself:

i. the acquiring entity is required to serve notice on the issuer of those shares to ensure the acquired entity is aware of its reporting obligation;

ii. only the acquiring entity must submit an affidavit. The acquiring entity must state in the affidavit that it has an intention of completing the proposed transaction in good faith, and that it has served notice on the acquired entity as
to its potential reporting obligations (and in tender offers, the acquiring entity also must affirm that the intention to make the tender offer has been publicly announced); and

iii. the waiting period begins after the acquiring entity files a complete Form.

Answer 70

all true

Question 71

i. the acquiring entity is required to serve notice on the issuer of those shares to ensure the acquired entity is aware of its reporting obligation;

ii. only the acquiring entity must submit an affidavit.

Answer 71

TRUE
TRUE

Question 72

Upon submission of the Form, the Commission shall determine within ____ days whether the Form and other relevant requirements have been completed in accordance with applicable rules or guidelines, and shall inform the parties of other information and/or documents it may have failed to supply, or issue a notice to the parties that the notification is sufficient for purposes of commencing Phase I review of the merger or acquisition.

Answer 72

15

Question 73

The waiting period under this Section shall commence only upon the Commission’s determination that the notification has been completed in accordance with applicable rules and guidelines.

Answer 73

true

Question 74

Within _______ days from commencing Phase I review, the Commission shall, if necessary, inform the parties of the need for a more comprehensive and detailed analysis of the merger or acquisition under a Phase II review, and request other information and/or documents that are relevant to its review.

Answer 74

30

Question 75

Within thirty (30) days from commencing Phase __ review, the Commission shall, if necessary, inform the parties of the need for a more comprehensive and detailed analysis of the merger or acquisition under a Phase ___ review, and request other information and/or documents that are relevant to its review.

Answer 75

I, II

Question 76

The issuance of such request has the effect of extending the period within which the agreement may not be consummated for an additional ___ days, beginning on the day after the request for information is received by the parties.

Answer 76

60

Question 77

in no case shall the total period for review by the Commission of the subject agreement exceed _____ days from the time the initial notification by the parties is deemed complete

Answer 77

90

Question 78

EXPIRATION OF THE PERIOD OF REVIEW FOR MERGER AND ACQUISITION

that should the parties fail to provide the requested information within fifteen (15) days from receipt of the said request, the notification shall be deemed expired and the parties must refile their notification. Alternatively, should the parties wish to submit the requested information beyond the fifteen (15) day period, the parties may request for an extension of time within which to comply with the request for additional information, in which case, the period for review shall be correspondingly extended.

Answer 78

TRUE

Question 79

Parties to a proposed transaction under review shall inform the Commission of any substantial modifications to the transaction. On the basis of the information provided, the Commission shall determine if a new notification is required.

Answer 79

TRUE

Question 80

(k) Where notification of a transaction is not required, then the periods provided above for the Commission to conclude its review shall not apply.

(l) The Commission, in its discretion, may terminate a waiting period prior to its expiration.

(m) When either waiting period set out ends on a Saturday, Sunday or holiday, the waiting period is extended until the next business day.

(n) When the above periods have expired and no decision has been promulgated for whatever reason, the merger or acquisition shall be deemed approved and the parties may proceed to implement or consummate it.

Answer 80

ALL ARE TRUE

Question 81

TRUE OR FALSE

All notices, documents, and information provided to or emanating from the Commission under Sections 4 and 5 of this Rule shall be subject to the confidentiality rule under Section 34 of the Act and Section 13 of this Rule, except for the purpose of enforcing the Act or these Rules, or when the release of information contained therein is with the consent of the notifying entity or is mandatorily required to be disclosed by law or by a valid order of a court of competent jurisdiction, or of a government or regulatory agency, excluding an exchange.

Answer 81

False- Including an exchange

Question 82

Effect of notification.

If within the relevant periods stipulated in the preceding section, the Commission determines that the merger or acquisition agreement is prohibited under Section 20 of the Act and Section 9 of this Rule, and does not qualify for exemption under Section 21 of the Act and Section 10 of this Rule, the Commission may:

(a) Prohibit the implementation of the agreement;

(b) Prohibit the implementation of the agreement unless and until it is modified by changes specified by the Commission; or

(c) Prohibit the implementation of the agreement unless and until the pertinent party or parties enter into legally enforceable agreements specified by the Commission.

Answer 82

ALL ARE TRUE

Question 83

When additional information or documents requested by the Commission for the purpose of a Phase II review of a notified merger or acquisition has been submitted by the parties, the Commission shall publish on its website the following information related to the notification on the basis of the Form submitted by the parties:
​
(1) the name of the involved entities;

(2) the type of the transaction;

(3) the markets covered or lines of businesses by the proposed merger or acquisition; and

(4) the date when the complete notification was received.

A. ALL OF THE GIVEN
B. 1 and 2
C. 3 and 4
D. 1,2,3

Answer 83

A

Question 84

When publishing this information, the Commission shall take into account the legitimate interest of the entities regarding the protection of their trade secrets and other confidential information

Answer 84

TRUE

Question 85

The Commission shall publish, from time to time, regulations adopting, modifying, rescinding or otherwise changing:

Answer 85

a) The transaction value threshold and such other criteria subject to compulsory notification;

(b) The information that must be supplied for notified mergers or acquisitions;

(c) Exceptions or exemptions from the notification requirement; and

(d) Other rules relating to the notification procedures.

Question 86

______ or ______ agreements that substantially prevent, restrict, or lessen competition in the Philippines in the relevant market or in the market for goods or services, as may be determined by the Commission, shall be prohibited.

Answer 86

Merger or acquisition

Question 87

MERGERS AND ACQUISITIONS EXEMPT FORM PROHIBITION BY COMMISSION

a) The concentration has brought about or is likely to bring about gains in efficiencies that are greater than the effects of any limitation on competition that result or are likely to result from the merger or acquisition agreement; or

(b) A party to the merger or acquisition agreement is faced with actual or imminent financial failure, and the agreement represents the least anticompetitive arrangement among the known alternative uses for the failing entity’s assets.

Answer 87

BOTH A AND B

Question 88

S1: Provided, that an entity shall not be prohibited from continuing to own and hold the stock or other share capital or assets of another corporation, which it acquired prior to the approval of the Act, or from acquiring or maintaining its market share in a relevant market through such means without violating the provisions of the Act and these Rules;

S2: Provided, further, that the acquisition of the stock or other share capital of one or more corporations not for investment only and not used for voting or exercising control and not to otherwise bring about, or attempt to bring about the prevention, restriction or lessening of competition in the relevant market shall not be prohibited.

Answer 88

S1 True
S2 Falase solely for investment

Question 89

The burden of proof under Section 10 of this Rule lies with the parties seeking the exemption. A party seeking to rely on the exemption specified in Section 21(a) of the Act or Section 10(a) of this Rule must demonstrate that if the agreement were not implemented, significant efficiency gains would not be realized.

Answer 89

TRUE

Question 90

Merger or acquisition agreements that have received a favorable ruling from the Commission, except when such ruling was obtained on the basis of fraud or false material information, may not be challenged under the Act or these Rules.

Answer 90

TRUE

Question 91

Information, including documents, shall be communicated or made accessible by the Commission, insofar as it contains trade secrets or other confidential information, the disclosure of which is considered necessary by the Commission for the purpose of the review.

Answer 91

FALSE- shall be not communicated; considered not necessary

Question 92

Any entity or party that supplies information, including documents, to the Commission, shall clearly identify any material that it considers to be confidential, provide a justification for the request of confidential treatment of the information supplied and the time period within which confidentiality is requested, and provide a separate non-confidential version by the date set by the Commission.
​
(c) The Commission may require the parties to the merger or acquisition and other interested parties to identify any part of a decision or case summary adopted by the Commission, if any, which in their view contains trade secrets or other confidential information. Where trade secrets or other confidential information are identified, the parties to the merger or acquisition and other interested parties shall provide a justification for the request of confidential treatment and provide a separate non-confidential version by the date set by the Commission.

Answer 92

TRUE TRUE

Question 93

(d) Whenever the Commission, pursuant to Section 13(c) of this Rule, deems that the justification for confidential treatment provided by the party is insufficient or not grounded, it shall inform the interested party of its decision to make the information accessible.
​
(e) If a merger or acquisition is under review in multiple jurisdictions, parties to the transaction may waive the confidentiality protections contained in this Rule, so as to allow the Commission to exchange otherwise protected information with competition authorities in other countries.

Answer 93

TRUE TRUE

Question 94

DETERMINATION OF THE RELEVANT MARKET

the following factors, among others, affecting the substitutability among goods or services constituting such market, and the geographic area delineating the boundaries of the market shall be considered:

Answer 94

a) The possibilities of substituting the goods or services in question with others of domestic or foreign origin, considering the technological possibilities, the extent to which substitutes are available to consumers and the time required for such substitution;

(b) The cost of distribution of the good or service, its raw materials, its supplements and substitutes from other areas and abroad, considering freight, insurance, import duties, and non-tariff restrictions; the restrictions imposed by economic agents or by their associations; and the time required to supply the market from those areas;

(c) The cost and probability of users or consumers seeking other markets; and

(d) National, local or international restrictions which limit the access by users or consumers to alternate sources of supply or the access of suppliers to alternate consumers.

Question 95

DETERMINATION OF CONTROL

In determining the control of an entity, the Commission may consider the following:

a) Control is presumed to exist when the parent owns directly or indirectly, through subsidiaries, more than ______ of the voting power of an entity, unless in exceptional circumstances, it can clearly be demonstrated that such ownership does not constitute control.

Answer 95

1/2

Question 96

(b) Control also exists even when an entity owns one half (1/2) or less of the voting power of another entity when:

(1) There is _____ over more than one half (1/2) of the voting rights by virtue of an _____ with investors;

Answer 96

power; agreement

Question 97

Control also exists even when an entity owns one half (1/2) or less of the voting power of another entity when:

2) There is power to ____ or ____ the financial and operating policies of the entity under a statute or agreement

Answer 97

direct; govern

Question 98

(b) Control also exists even when an entity owns one half (1/2) or less of the voting power of another entity when:

(3) There is power to ____ or ____ the majority of the members of the board of directors or equivalent governing body;

Answer 98

appoint; remove

Question 99

b) Control also exists even when an entity owns one half (1/2) or less of the voting power of another entity when:

4) There is power to ___ the majority votes at meetings of the board of directors or equivalent governing body;

Answer 99

cast

Question 100

(b) Control also exists even when an entity owns one half (1/2) or less of the voting power of another entity when:

5) There exists ______ over or the right to use all or a significant part of the assets of the entity; or

Answer 100

ownership

Question 101

b) Control also exists even when an entity owns one half (1/2) or less of the voting power of another entity when:

There exist ___ or ____ which confer decisive influence on the decisions of the entity

Answer 101

rights; contracts

Question 102

In determining whether an anti-competitive agreement or conduct substantially prevents, restricts, or lessens competition, the Commission, in appropriate cases, shall, inter alia:

Answer 102

a) Define the relevant market allegedly affected by the anti-competitive agreement or conduct, following the principles laid out in Section 24 of the Act and Rule 5 of these Rules;

(b) Determine if there is actual or potential adverse impact on competition in the relevant market caused by the alleged agreement or conduct, and if such impact is substantial and outweighs the actual or potential efficiency gains that result from the agreement or conduct;

(c) Adopt a broad and forward-looking perspective, recognizing future market developments, any overriding need to make the goods or services available to consumers, the requirements of large investments in infrastructure, the requirements of law, and the need of our economy to respond to international competition, but also taking account of past behavior of the parties involved and prevailing market conditions;

(d) Balance the need to ensure that competition is not prevented or substantially restricted and the risk that competition efficiency, productivity, innovation, or development of priority areas or industries in the general interest of the country may be deterred by overzealous or undue intervention; and

(e) Assess the totality of evidence on whether it is more likely than not that the entity has engaged in anti-competitive agreement or conduct, including whether the entity’s conduct was done with a reasonable commercial purpose, such as but not limited to, phasing out of a product or closure of a business, or as a reasonable commercial response to the market entry or conduct of a competitor.

Question 103

Dominance can exist on the part of one entity (________ dominance) or of two or more entities (______ dominance).

Answer 103

single; collective

Question 104

In determining whether an entity has a market dominant position for purposes of this Act and these Rules, the Commission shall consider the following illustrative and non-exhaustive criteria, as may be appropriate:

(a) The share of the entity in the relevant market and the ability of the entity to fix prices unilaterally or to restrict supply in the relevant market;

(b) The share of other market participants in the relevant market;

(c) The existence of barriers to entry and the elements which could foreseeably alter both the said barriers and the supply from competitors;

(d) The existence and power of its competitors;

Answer 104

ALL ARE TRUE

Question 105

e) The credible threat of future expansion by its actual competitors or entry by potential competitors (expansion and entry);

(f) Market exit of actual competitors;

(g) The bargaining strength of its customers (countervailing power);

(h) The possibility of access by its competitors or other entities to its sources of inputs;

(i) The power of its customers to switch to other goods or services;

(j) Its recent conduct;

Answer 105

In determining whether an entity has a market dominant position for purposes of this Act and these Rules, the Commission shall consider the following illustrative and non-exhaustive criteria, as may be appropriate:

Question 106

k) Its ownership, possession or control of infrastructure which are not easily duplicated;

(l) Its technological advantages or superiority, compared to other competitors;

(m) Its easy or privileged access to capital markets or financial resources;

(n) Its economies of scale and of scope;

(o) Its vertical integration; and

(p) The existence of a highly developed distribution and sales network.

Answer 106

In determining whether an entity has a market dominant position for purposes of this Act and these Rules, the Commission shall consider the following illustrative and non-exhaustive criteria, as may be appropriate:

Question 107

Presumption of dominance.

There shall be a rebuttable presumption of market dominant position if the market share of an entity in the relevant market is at least ______ unless a new market share threshold is determined by the Commission for that particular sector.

Answer 107

50%

Question 108

The Commission shall, from time to time, determine and publish the threshold for dominant position or the minimum level of share in the relevant market that could give rise to a presumption of dominant position. In such a determination, the Commission would consider:

(a) The structure of the relevant market;

(b) The degree of integration;

(c) Access to end-users;

(d) Technology and financial resources; and

(e) Other factors affecting the control of a market, as provided in Section 2 of this Rule.

Answer 108

ALL ARE CORRECT

Question 109

How much should an entity pay if incase fails or refuses to comply with a ruling, order or decision issued by the Commission?

Answer 109

50k-2M for each violation and a similar amount of penalty for each day thereafter until the said entity fully complies. These fines shall only accrue daily beginning 45 days from the time the said decision or order was received by the party.

Question 110

Supply of incorrect or misleading information
How much fine may the Commission impose upon any entity where intentionally? or negligently supply incorrect or misleading information in any document?

Answer 110

up to 1M

Question 111

Any other violations not specifically penalized under the relevant provisions of this Act shall be penalized by a fine of ____?

Answer 111

50k-2M

Question 112

Schedule of fines indicated in the section of RA 10667 shall be increased by the Commission every ____ to maintain their real value from the time it was set.

Answer 112

5 years.

Question 113

An entity that enters into any anti-competitive agreement shall for each and every violation, be penalized by imprisonment from ___ to _____ and a fine of not less than _____ but not more than 250 million pesos.

Answer 113

2;7;50M

Question 114

Who imposes the penalty of imprisonment?

Answer 114

Imposed upon responsible officers and directors of the entity

Question 115

What if the entities involved in criminal penalties are juridical persons, who will imposed the imprisonment?

Answer 115

It shall be imposed on its officers, directors or employees holding managerial positions who are knowingly and willfully responsible for such violation.