- E.g.
it does not follow that there is violation when
PHILIPPINE COMPETITION ACT
(RA NO. 10667)
- More competition results in more products and services
w/c result in lower prices and better products and
services.
- Anti competitive acts result in lesser goods and
services w/ higher prices and poorer services and lower
quality of products.
Ways to deter Anti-Competitive Conduct
by: 1. Imposing Criminal/Administrative Sanctions
2. Imposing Civil Liability
3 Public Authority intervention in Market Place.
The PCA tries to accomplish its purpose by:
1. Identifying prohibited acts:
a. Anti-Competitive Agreements
b. Abuse of Dominant Position
c. Anti-Competitive Mergers
Scope of Application [S3]
- PCA applies to int’l trade having direct effects in any
trade, industry and commerce in PH.
- Not applicable to collective bargaining agreement.
Relevant Market – market in w/c particular good or
service is sold and w/c is a combination of 1. Relevant
product market and relevant geographic market
Relevat product market – comprises good and services
regarded as substitutable by consumer by reason of its
characteristics and prices.
Relevant geographic market – area in w/c entity is
involved in supply and demand of goods and services.
Single Economic Rule –Entities control or controlled by
another Entity, have common economic interests and
cannot act independently of each other, shall not be
considered competitors.
parent company sets price of goods of its subsidiary.
- Control is presumed to exist when the parent owns,
through subsidiaries, more than ½ of the voting power of
an entity.
ANTI-COMPETITIVE AGREEMENTS
Horizontal Agreement that are prohibited per se:
- Restricting competition as to price. (whether
substantially prevent, restrict or lessen competition
(PRL)
Prohibited depending on effect – prohibited only if its
effects is to substantially PRL competition:
1. Limiting production
2. Dividing or sharing the market by volume of sales.
Catch all Provision – Any agreement w/c has the object
or effects of substantially PRL competition is prohibited.
ABUSE OF DOMINANT POSITION
- Dominant position refers to economic strength w/c
entity can control relevant market independently.
- not a violation per se; it is abuse of such that is
prohibited; entity that is big and dominant does not
violate the law.
-what is prohibites is abused by engaging in conduct that
would substantially PRL competition
-Example of abuse: setting goods or services below
cost; imposing unfairly low purchase prices; limiting
production to the prejudice of consumers.
Permissible price differential : - socialized pricing for less
fortunate sector of economy.
Mergers and Acquisitions (M or A) – PCC can review
such. Has 90 day review period from notice. Deem
approved upon non action.
-transaction suspended pending review.
a. Compulsory notification – cases beyond threshold set,
required notification before consummating agreement.
within 30 days from signing definitive agreements.
b. Effect of failure to give notice – agreement void.
Penalty of 1% to 5% of value of transaction.
- If M&A anti-competive, PCC may prohibit
implementation of agreement.

CREEPING TRANSACTIONS COVERED – M or A

consisting of successive transactions w/ shall take place
within one year period.

THRESHOLD FOR NOTIFICATION

Concurring tests. To determine if M or A falls beyond

threshold, APPLY BOTH 1. Size of Entity test (or Size of
Person test (SOP) and 2. The Size of Transaction Test.

Size of Entity Test: Aggregate Annual gross revenues

or value of assets of the acquiring or acquired entites
exceeds P6 Billion (Feb. 11, 2020 PCC Resolution).

Size of Transaction Test: Value of transaction exceeds

P2.4 Billion Pesos

M or A within the PH

- merger or acquisition of assets in PH if either:

1. Aggregate value of assets in PH being acquired

exceeds P2.4 B OR

2. gross revenue generated in PH by assets acquired in

PH exceed P2.4 B

M or A outside the PH

-concurrence of:

1. aggregate value of assets in PH of acquiring entity

exceeds P2.4 B AND

2. gross revenues generated in PH by those assets

acquired outside PH exceed P2.4 B

M or A Inside and Outside the PH

- concurrence of:

1. Aggregate value of the assets in PH of acquiring entity

exceeds P2.4 B AND

2. Aggregate gross revenue generated in PH by assets

acquired in PH and any assets acquired outside PH
collectively exceed P2.4 B.