Quiz 16 Questions Flashcards
Discussion:
Anti-Competition Review Material
1) What does the Philippine Competition Act (PCA) prohibit?
The Philippine Competition Act (PCA) mainly prohibits collusion between rivals to the prejudice of consumers.
As a general rule, the Philippine Competition Act makes it illegal for business rivals to act together in ways that can limit competition, lead to higher prices, or hinder other business from entering the market.
The following specific agreements between or among competitors are prohibited:
1) Restricting competition as to price, or components thereof, or other terms of trade;
2) Fixing prices at an auction or in any form of bidding;
3) Setting, limiting, or controlling production, markets, technical development, or investment; and
4) Dividing or sharing the market.
Anti-Competition Review Material
2) If there is a collusion, do you have to prove damage to the consumer to be charged under the PCA?
No. Collusions are illegal per se (mala in se), which means that they are inherently illegal and no further inquiry into their actual effect on the market or the intentions of the parties who engage in the illegal act or agreement is necessary.
Anti-Competition Review Material
3) When is an anti-competitive agreement considered not a violation of the PCA?
An anti-competitive agreement can be considered not a violation of the PCA if there is benefit of the consumer. Those that contribute to improving the production or distribution of goods and services or promoting technical or economic progress, while allowing consumers a fair share of the resulting benefits, may not necessarily be deemed a violation of PCA.
Notes:
