Philippine Competition Act (RA NO. 10667)

- E.g.
it does not follow that there is violation when

PHILIPPINE COMPETITION ACT parent company sets price of goods of its subsidiary.
(RA NO. 10667) - Control is presumed to exist when the parent owns,
through subsidiaries, more than ½ of the voting power of
an entity.
- More competition results in more products and services
w/c result in lower prices and better products and
services. ANTI-COMPETITIVE AGREEMENTS
- Anti competitive acts result in lesser goods and Horizontal Agreement that are prohibited per se:
services w/ higher prices and poorer services and lower
- Restricting competition as to price. (whether
quality of products.
substantially prevent, restrict or lessen competition
(PRL)
Ways to deter Anti-Competitive Conduct
by: 1. Imposing Criminal/Administrative Sanctions Prohibited depending on effect – prohibited only if its
effects is to substantially PRL competition:
2. Imposing Civil Liability
1. Limiting production
3 Public Authority intervention in Market Place.
2. Dividing or sharing the market by volume of sales.
The PCA tries to accomplish its purpose by:

Catch all Provision – Any agreement w/c has the object
1. Identifying prohibited acts: or effects of substantially PRL competition is prohibited.
a. Anti-Competitive Agreements
b. Abuse of Dominant Position ABUSE OF DOMINANT POSITION

c. Anti-Competitive Mergers - 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

Scope of Application [S3]
prohibited; entity that is big and dominant does not
- PCA applies to int’l trade having direct effects in any violate the law.
trade, industry and commerce in PH.
-what is prohibites is abused by engaging in conduct that
- Not applicable to collective bargaining agreement. would substantially PRL competition
-Example of abuse: setting goods or services below

cost; imposing unfairly low purchase prices; limiting
Relevant Market – market in w/c particular good or production to the prejudice of consumers.
service is sold and w/c is a combination of 1. Relevant
product market and relevant geographic market Permissible price differential : - socialized pricing for less
fortunate sector of economy.
Relevat product market – comprises good and services
regarded as substitutable by consumer by reason of its Mergers and Acquisitions (M or A) – PCC can review
characteristics and prices. such. Has 90 day review period from notice. Deem
approved upon non action.
Relevant geographic market – area in w/c entity is
involved in supply and demand of goods and services. -transaction suspended pending review.
a. Compulsory notification – cases beyond threshold set,

required notification before consummating agreement.
Single Economic Rule –Entities control or controlled by within 30 days from signing definitive agreements.
another Entity, have common economic interests and
cannot act independently of each other, shall not be b. Effect of failure to give notice – agreement void.
considered competitors. 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.

Philippine Competition Act (RA NO. 10667)

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Philippine Competition Act (RA NO. 10667)

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- E.g.

it does not follow that there is violation when

Ways to deter Anti-Competitive Conduct

The PCA tries to accomplish its purpose by:

b. Abuse of Dominant Position ABUSE OF DOMINANT POSITION

- not a violation per se; it is abuse of such that is

-Example of abuse: setting goods or services below

a. Compulsory notification – cases beyond threshold set,

CREEPING TRANSACTIONS COVERED – M or A

THRESHOLD FOR NOTIFICATION

Concurring tests. To determine if M or A falls beyond

Size of Entity Test: Aggregate Annual gross revenues

Size of Transaction Test: Value of transaction exceeds

- merger or acquisition of assets in PH if either:

1. Aggregate value of assets in PH being acquired

2. gross revenue generated in PH by assets acquired in

1. aggregate value of assets in PH of acquiring entity

2. gross revenues generated in PH by those assets

M or A Inside and Outside the PH

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

2. Aggregate gross revenue generated in PH by assets

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