The Philippines recently enacted Republic Act 10667 or the
Philippine Competition Act (Act), which defines, prohibits and
penalises anti-competitive agreements, abuse of dominant
position, and anti-competitive mergers and acquisitions. It
also creates the Philippine Competition Commission (PCC), which
has primary and original jurisdiction to deal with cases
involving violations of the Act. Published on July 24 2015, the
Act took effect on August 8 2015.
Anti-competitive agreements cover both horizontal and
vertical agreements and include those that are per se illegal
(such as those that restrict competition as in terms of price
or components or other terms of trade and those relating to
bid-rigging or auction manipulation) and those that have the
object or effect of substantially preventing, restricting or
lessening competition (for example setting, limiting or
controlling production, markets, technical development, or
investment, dividing or sharing the market).
Abuse of dominant position refers to conduct that would
substantially prevent, restrict or lessen competition and
includes predatory pricing, imposing barriers to entry,
discrimination in price or other terms, tying and bundling.
There is a rebuttal presumption of dominance if an entity's
market share in the relevant market is at least 50%, unless the
PCC determines a new threshold.
Anti-competitive M&As refer to those that substantially
prevent, restrict or lessen competition. Parties to M&As
with transaction values exceeding Php1 billion are prohibited
from consummating the same until 30 days after the PCC has been
notified. Failure to comply renders the M&A void and the
parties will be fined between one and five percent of the
To enable parties to renegotiate agreements or restructure
their business to comply with the Act, administrative, civil
and criminal penalties will only be imposed two years from the
effective date of the Act.
Arlene M Maneja