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Philippine Competition Act

The Philippine Competition Act (R.A. No. 10667) aims to enhance economic efficiency and protect consumer welfare by prohibiting anti-competitive practices and abuse of dominant positions. It applies to all entities engaged in trade and commerce, covering both domestic and foreign activities that affect competition in the Philippines. The law establishes the Philippine Competition Commission (PCC) to enforce compliance, investigate violations, and impose penalties, including fines and imprisonment for serious offenses.

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Lovenia M. Ferrer
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28 views3 pages

Philippine Competition Act

The Philippine Competition Act (R.A. No. 10667) aims to enhance economic efficiency and protect consumer welfare by prohibiting anti-competitive practices and abuse of dominant positions. It applies to all entities engaged in trade and commerce, covering both domestic and foreign activities that affect competition in the Philippines. The law establishes the Philippine Competition Commission (PCC) to enforce compliance, investigate violations, and impose penalties, including fines and imprisonment for serious offenses.

Uploaded by

Lovenia M. Ferrer
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as PDF, TXT or read online on Scribd
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Summary Notes: Philippine Competition Act (R.A. No.

10667)

Purpose and Policy

• Enacted to enhance economic efficiency, encourage free and fair competition, and
protect consumer welfare.

• Seeks to prohibit anti-competitive practices and punish abuse of dominant position.

• Promotes market growth through fair business practices across industries.

Coverage

• Applies to all private and public entities engaged in trade, industry, and commerce.

• Covers all commercial activities that directly or indirectly affect competition in the
Philippine market, even if the entities involved are located outside the country.

Key Prohibited Acts

Anti-Competitive Agreements (Section 14)

• Per Se Prohibited:

o Price fixing.

o Bid rigging.

o Market allocation.

• Rule of Reason Prohibited:

o Agreements substantially restricting competition, such as limiting production or


investment.

Abuse of Dominant Position (Section 15)

A dominant firm cannot:

• Set unfair purchase or selling prices.

• Limit production, markets, or technical development.


• Discriminate on transactions.

• Tie unrelated products.

• Make contracts subject to acceptance of supplementary obligations.

Anti-Competitive Mergers and Acquisitions (Section 20)

• Mergers or acquisitions that substantially prevent, restrict, or lessen competition are


prohibited.

• Mandatory notification thresholds apply for large transactions.

• The Philippine Competition Commission (PCC) can review and prohibit anti-competitive
mergers.

Philippine Competition Commission (PCC)

• An independent quasi-judicial body created to enforce the law.

• Powers include:

o Conducting investigations.

o Reviewing mergers and acquisitions.

o Issuing orders and imposing penalties.

o Advocacy for competition policy.

Penalties

• Fines: up to ₱100 million for initial offenses and up to ₱250 million for repeated
offenses.

• Criminal Liability: For violations like price-fixing and bid rigging — punishable by
imprisonment (2-7 years) and fines.

• Agreements and contracts found to be anti-competitive are considered void.

Extraterritorial Application

• Applies to conduct outside the Philippines if it has substantial effects on Philippine


commerce.
Transitional Clause

• A 2-year grace period was provided (from effectivity in 2015) for businesses to review
and restructure their practices to comply with the law.

Quick Study Tips:

• Know the difference between Per Se Prohibited Agreements and Rule of Reason
Agreements.

• Understand how the law treats dominant positions — being dominant isn’t illegal,
abusing dominance is.

• Be familiar with the role and powers of the PCC.

• Remember: Not all market dominance is anti-competitive, but abusive conduct is


punishable.

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