PHILIPPINE COMPETITION ACT [R.A. 10667]

Aside from how I would get home, what were you concerned about when I left Yeyey’s birthday party?

That you looked better with a ponytail on and I didn’t see it

All I can say is I was __________ to meet you

Enchanted

Your dad wanted to _____ the cat that destroyed your foot.

shoot

What is our dream 5 car garage?

1. Lexus LX 570

2. Ford Thunderbird

3. Toyota Supra Mark IV

4. Toyota Celica GT4

5. Honda Pilot

Where did we first do it hehe

BF Northwest

Where did we do it the second time

SM Center

What does it say on the ring you gave me?

♡ Honey ♡

What is the primary policy objective of the State in enacting the National Competition Policy?

To enhance economic efficiency and promote free and fair competition in all commercial economic activities.

What is one constitutional goal of the Act regarding economic concentration?

To prevent economic concentration that will unduly stifle competition, lessen, or manipulate free markets.

To what types of activities does the Philippine Competition Act generally apply?

It is enforceable against any person or entity engaged in trade, industry, and commerce in the Philippines.

What is specifically excluded from the applicability of the Philippine Competition Act?

Combinations or activities of workers or employees designed solely to facilitate collective bargaining with employers.

What is the definition of Acquisition under the Act?

The purchase of securities or assets for the purpose of obtaining control by one or more entities over another.

What does the term Agreement refer to under the Act?

Any type or form of contract, arrangement, understanding, collective recommendation, or concerted action.

What is the definition of Control under the Act?

The ability to substantially influence or direct the actions or decisions of an entity, whether by contract or agency. 

What does Dominant Position refer to?

A position of economic strength enabling an entity to control the relevant market independently from competitors/customers.

What are the three main prohibited acts under the Philippine Competition Act?

Anti-Competitive Agreements, Abuse of Dominant Position, and Prohibited Mergers and Acquisitions.

What two specific Anti-Competitive Agreements are considered per se prohibited?

Restricting competition as to price or terms of trade, or fixing price at an auction or bidding.

What two types of agreements are prohibited if they substantially lessen competition?

Setting/limiting production, markets, or investment, or dividing/sharing the market by territory or volume.

What is a possible defense against an Anti-Competitive Agreement violation?

If the agreement improves production or distribution or promotes economic progress, and consumers get a fair share.

What is an example of Abuse of Dominant Position related to price?

Selling goods or services below cost with the object of driving competition out of the relevant market.

What is an example of Abuse of Dominant Position related to transactions?

Making a transaction subject to acceptance of other obligations that have no connection with the transaction.

What is considered a permissible price differential under the prohibition on price discrimination?

Socialized pricing for the less fortunate, or differentials reflecting differences in cost of sale or delivery.

What is the rebuttable presumption regarding market dominant position?

There is a rebuttable presumption of dominant position if the entity's market share is at least 50%.

What type of mergers and acquisitions are prohibited under the Act?

Agreements that substantially prevent, restrict, or lessen competition in the relevant market shall be prohibited.

What is one circumstance that may exempt a prohibited merger or acquisition from prohibition?

When the parties establish that the concentration brings about efficiency gains greater than the limitation on competition.

What is the minimum value threshold that currently triggers the requirement for Compulsory Notification of a merger?

The Size of Transaction threshold is currently P2.9 billion and the Size of Party is P7 billion.

What is the primary effect of a merger or acquisition agreement being consummated without the required notification?

The agreement shall be considered void and the parties are subject to an administrative fine. 

How long may the Commission extend the review period if it requests further information on a notified transaction?

For an additional 60 days, but the total period for review shall not exceed 90 days from initial notification.

What happens if the merger review period expires and no decision has been promulgated?

The merger or acquisition shall be deemed approved, and the parties may proceed to implement or consummate it.

What is the maximum administrative fine for a first offense of anti-competitive agreements or abuse of dominant position?

The Commission may impose administrative fines of up to P100 million for the first offense.

What is the penalty for an entity that fails or refuses to comply with an order issued by the Commission?

A penalty of P50,000 to P2,000,000 for each day thereafter until the entity fully complies.

What is the maximum fine for supplying incorrect or misleading information to the Commission?

The Commission may impose fines of up to $\text{P1,000,000}$ for intentionally or negligently supplying incorrect information.

What are the criminal penalties for an entity that enters into any anti-competitive agreement?

Imprisonment from 2 to 7 years and a fine of P50 million to P250 million.

Who specifically faces the penalty of imprisonment when the entities involved in an anti-competitive agreement are juridical persons?

The penalty is imposed on the officers, directors, or employees holding managerial positions who are knowingly and willfully responsible.

What is the duration of the criminal penalty for entering into an anti-competitive agreement?

Imprisonment is for 2 to 7 years, and the fine ranges from P50 million to P250 million.