Philippine Competition Act Flashcards
Declaration of Policy
- To attain a more equitable distribution of opportunities, income, and wealth
- A sustained increase in the amount of goods and services produced by the nation
- An expanding productivity as the key to raising the quality of life for all
Duties of the state in relation to Philippine Competition Act
- Enhance economic efficiency and promote free and fair competition in trade, industry, and all commercial economic activities
- Prevent economic concentration
- Penalize all forms of anti-competitive agreements, abuse of dominant position, and anti-competitive mergers and acquisitions
Applicability of the Act
Any person or entity engaged in any trade, industry, and commerce in the Republic of the Philippine. Also applies to international trade having direct, substantial, and reasonably foreseeable effects in trade in the Republic of the Philippines
Prohibited Acts in the ACT
- Anti-Competitive Agreements
- Abuse of Dominant Position
- Prohibited Mergers
Prohibited Anti-Competitive Agreement
- Price fixing
- Bid rigging
- Setting or controlling production, markets, technical development, or investment
- Dividing or sharing the market
Defense for Anti-Competitive Act
- Contriburtes to improving production or distribution of goods and services
- Promote technical and economic progress
- While allowing consumers a fair share of the resulting benefits
Defense for Anti-Competitive Act
- Contributes to improving production or distribution of goods and services
- Promote technical and economic progress
- While allowing consumers a fair share of the resulting benefits
Dominant Position
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:
1. Competitors
2. Customers.
3. Suppliers; or
4. Consumers
Acts which is considered Abuse of Dominant Position
- Selling goods below cost with object of driving competition out of the market
- Imposing barriers to entry or committing acts that prevent competition from growing
- Making a transaction subject to acceptance by the other parties of other obligations
- Setting prices or other terms or conditions that discriminate unreasonably between customers or sellers
- Imposing restrictions on the lease or contract for sale or trade of goods or services
- 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 service to be supplied
- Directly or indirectly imposing unfairly low purchase prices for goods or services
- Limiting production, markets, or technical development to the prejudice of consumers
Exceptions from Prohibited Mergers and Acquisitions
- The Merger is likely to bring about gains and efficiencies that are greater than the effects of any limitation
- Faced with actual or imminent financial failure
- Occurred prior to the approval of this act
- Used solely for investment and not used for voting or exercising control.
Burden of Proof for Exemption
Lies with the parties seeking the exemption
Compulsory Notification
Where the value of transaction exceeds 1,000,000,000 are prohibited from consummating their agreement until 30 days after providing notification to the commission
Effect of no Notice given
- Agreement will be void
- Administrative fine of 1% to 5% of the value of the transaction
Administrative Fine for violation of this act
- Fines up to 100,000,000 for first offense
- Fine between 100,000,000 to 200,000,000 for second offense
Failure to comply with an order of the Commission
- Penalty of 50,000 to 2,000,000 for each violation; and
- A similar amount of penalty for each day thereafter until the said entity fully complies
