Philippine Competition Act

1. Statement 1: The Philippine Competition Act applies to the combination or activities of workers or employees designed solely to facilitate collective bargaining.

Statement 2: Acts done outside the Philippines may likewise be covered by the Philippine Competition Act

a. Only Statement 1 is true.

b. Only Statement 2 is true.

c. Both statements are true.

d. Both statements are not true.

b. Only Statement 2 is true.

2. It 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.

a. Controlling position

b. Market leading position

c. Dominant position

d. Monopoly

c. Dominant position

3. It refers to the joining of two (2) or more entities into an existing entity or to form a new entity.

a. Merger

b Consolidation

c Market fusion

d. Business combination

a. Merger

4. By definition, relevant market is the combination of:

a. Relevant product market and relevant geographic market

b. Relevant product market and relevant territorial market

c. Relevant consumer market and relevant geographic market

d. Relevant consumer market and relevant territorial market

a. Relevant product market and relevant geographic market

5. Which of the following are considered prohibited acts under the Philippine Competition Act?

1. Competitive Agreements

2. Abuse of Dominant Position

3.Prohibited Mergers

a. I and II only

b. I and III only.

c. II and III only.

d. I, II and III.

c. II and III only.

6. Which of the following is not an example of an anti-competitive agreement?

a. Agreements restricting competition as to price

b. Agreements controlling and limiting technical development

c. Agreements to enter into a joint venture for the development of an envisioned product

d. Agreements dividing the market per territory between two competitors

c. Agreements to enter into a joint venture for the development of an envisioned product

7. A Corporation owns 70% of B Corporation and 80% of C Corporation. C Corporation purchases 90% of its raw materials from D Corporation. A contract which seeks to limit production was entered into between two entities. Which entities should it be in order to be considered anti-competitive?

a. Between A Corporation and B Corporation

b. Between A Corporation and C Corporation

c. Between B Corporation and C Corporation

d. Between C Corporation and D Corporation

d. Between C Corporation and D Corporation

8. Which of the following acts may be considered as abuse of dominant position?

i.Selling one's goods or services at above cost

ii. Committing anti-competitive acts that prevent competitions from growing within the market

iii. Development of a superior product or process to edge out competition

a. I and II only.

b. Il only.

c. III only

d. II and III only.

b. Il only.

9. Statement 1: Permissible price differentials are inherently anti-competitive

Statement 2: Socialized pricing for the less fortunate sector of the economy is an example of permissible price differential

a. Only Statement 1 is true.

b. Only Statement 2 is true.

c. Both statements are true.

d. Both statements are not true.

b. Only Statement 2 is true.

10. Does the Philippine Competition Act allow the existence of a dominant position of an entity?

a. Yes. What is prohibited are acts that exploit this dominant position

b. Yes. What is prohibited are acts that acquire this dominant position from already existing ones.

c. No. Dominant positions are anti-competitive in nature.

d. No. Dominant positions necessarily discourage new players from entering the relevant market.

a. Yes. What is prohibited are acts that exploit this dominant position

11. Statement 1: Apple, Inc., released iPhone 17, thereby reducing the market share of other competitors with the new flagship phone's advanced camera system. This is an abuse of dominant position.

Statement 2: Microsoft, Inc., released Microsoft Office 2022, which contains new patented software features such as 3D and 4D editing and advanced graphics. Other software developers are prohibited from duplicating these features due to the patent. This is an abuse of dominant position.

a. Only Statement 1 is true.

b. Only Statement 2 is true.

c. Both statements are true.

d. Both statements are not true.

d. Both statements are not true.

12. Dubu's Fruit Juice is the Philippines' leading producer of pineapple juice. It operates its factory in Negros Oriental where it purchases 90% of the pineapple output of the pineapple farmers. The market rate for pineapples is P150 per kilo. Dubu's Fruit Juice is bargaining with the farmers and their cooperatives to sell the pineapples to them at P70 or else it will buy pineapples from other sources. Is this proposal legal?

a. Yes, this is allowed.

b. No, this is an example of an anti-competitive agreement

c. No, this is an example of a prohibited merger

d. No, this is an example of an abuse of dominant position

d. No, this is an example of an abuse of dominant position

13. Merger or acquisition agreements that substantially prevent, restrict or lessen competition in the relevant market or in the market for goods or services are:

a. Prohibited.

b. Discouraged.

c. Subject to greater license fees.

d. Encouraged.

a. Prohibited.

14. If an agreement covered by the compulsory notification was threshold was implemented without the requisite notification to the PCC, the agreement should be considered:

a. Void.

b. Rescinded.

c. Valid, but the parties are subject to civil penalties.

d. Valid, but the parties are subject to civil and criminal penalties.

a. Void.

15. Mergers or acquisition covered by compulsory notification are prohibited from consummating their agreement until:

a. thirty (30) days after providing notification to the PCC

b. sixty (60) days after providing notification to the PCC

c. ninety (90) days after providing notification to the PCC

d. one hundred twenty (120) days after providing notification to the PCC

a. thirty (30) days after providing notification to the PCC