Competition Law at Philippines
Absolutely! Here’s an overview of Competition Law in the Philippines:
Competition Law in the Philippines
1. Legal Framework:
The main statute is the Philippine Competition Act (PCA), Republic Act No. 10667, enacted in 2015.
The law is enforced by the Philippine Competition Commission (PCC), an independent quasi-judicial body.
The PCA aims to promote and protect market competition to ensure efficient trade and consumer welfare.
2. Objectives:
Prevent anti-competitive agreements and abuses of dominant positions.
Regulate mergers and acquisitions that may substantially lessen competition.
Protect consumers and promote fair business practices.
3. Key Provisions:
Anti-competitive Agreements:
Prohibits agreements between competitors that fix prices, rig bids, allocate markets, limit production, or otherwise restrict competition.
Includes both horizontal and vertical agreements.
Abuse of Dominant Position:
Firms with substantial market power cannot abuse their position.
Examples include predatory pricing, refusal to deal, exclusive dealing, and discriminatory practices.
Merger Control:
Mergers and acquisitions that meet certain thresholds require prior notification and approval from the PCC.
The PCC evaluates whether the transaction will substantially lessen competition.
Unfair Methods of Competition:
The PCA also prohibits unfair trade practices, deceptive advertising, and other unfair methods that harm competition or consumers.
4. Enforcement:
The Philippine Competition Commission investigates violations, conducts market studies, and can impose administrative fines.
Penalties can be significant, including fines of up to 10% of the offender’s annual gross revenue.
The Commission can also issue cease-and-desist orders and require divestiture of assets.
Decisions can be appealed to the courts.
5. Additional Notes:
The PCA also promotes competition advocacy and consumer protection.
The law applies to all enterprises engaged in trade or business in the Philippines, regardless of nationality.
RELATED Blog
0 comments