Philippine Competition Act Flashcards
Philippine Competition Act Applicability
- Any person or entity
- International trade
What to remember in case of international trade?
- Any person or entity engaged in business in PH
- International trade having direct, substantial, reasonably foreseeable effects in PH
Kasama kahit yung act is nangyari or nagawa sa ibang bansa
PCA shall not apply to
agreements designed solely for collective bargaining when it comes to employment
Relevant Market is a combination of 2 markets.
- Relevant Product Market
- Relevant Geographic Market
comprises all goods or services which are regarded as substitutable or interchangeable by the consumer
Relevant Product Market
Per Se or Agreements with Effect of …
- Output restriction
Agreements with Effect of …
Per Se or Agreements with Effect of …
- restricting competition as to price
Per Se
Per Se or Agreements with Effect of …
- price fixing and bid manipulation
Per Se
Anti Competitive Agreements cover only horizontal agreements. True or False?
False (both horizontal and vertical)
What can be a defense for anti competitive agreements?
- to improving the production or distribution
- to promoting technical or economic progress
- allowing consumers a fair share of benefits
Parent-Subsiary are considered as competitors under PCA. True or False?
False
Having a Dominant Position is prohibited. True or False?
False (pwedeng-pwede, as long as hindi inaabuse)
Abuse of Dominant Position with effects of substantially…
- price discrimination (XPN : permissible price differentials)
- predatory pricing
- barriers to entry
- tying and bundling
- low purchase price
- unfair selling price
- limiting production
Low purchase price is prohibited if you are buying from a __
less fortunate / marginalized
Abuse of Dominant Position with effects of substantially…
- price discrimination (XPN : permissible price differentials)
- predatory pricing
- barriers to entry
- tying and bundling
- low purchase price
- unfair selling price
- limiting production
Unfair selling price & limiting production are, in all cases, prohibited. True or False?
False (allowed if due to superiority)
Abuse of Dominant Position with effects of substantially…
- price discrimination (XPN : permissible price differentials)
What are the permissible price differentials?
- Socialized pricing for less fortunate
- Which reasonably reflect differences
- In response to competitors
- In response to changing market conditions
The defenses stated in anti-competitive agreements are also applicable in abuse of dominant position. True or False?
True
Increasing market share is allowed IF
- through legitimate means
- do not substantially …
All mergers and acquisitions are prohibited. True or False?
False (only those that subtantially…)
Allowed (Exemptions to Prohibited) Mergers and Acquisitions
- will bring gains or efficiencies greater than limitation on competition
- faced with actual or imminent financial failure
- prior to this act
- solely for investment and not for voting or exercising control
What to remember in “faced with actual..”?
Why is “prior to this act” allowed?
Nakanino yung burden of proof for these exemptions?
- faced with actual… - with the least anti-competitive agreement
- because PCA is prospective
Yung nagsiseek ng exemption
What is the value of transaction wherein compulsory yung notification sa PCC?
1B
Value that exceeds 1B are prohibited from consummating agreement until __ days after notifying PCC
30 days
Value of transaction exceeds 1B. However, I didn’t notify PCC. What are the penalties?
- agreement is void
- administrative penalties of 1% to 5% of the value of transaction
The PCC requested further information within the 30-day period. The period of prohibition will be extended for additional __ days
60 (shall not exceed a total of 90 days)
Nag-expire na yung period to review, then wala pa ring decision yung PCC. What is the assumption?
deemed approved
Nireview na ng PCC yung transaction. Ang verdict niya is prohibited daw yung agreement. Ano yung 2 bagay na pwede kong gawin para payagan na ko?
- modified the changes specified by PCC
- enter into legally enforceable contracts specified by PCC
