Competition laws all over the world, including the Philippines through the Philippine Competition

Act, typically prohibit three (3) types of anti-competitive conduct, one of which is the:

ABUSE OF DOMINANT POSITION which refers to activities of a dominant player to abuse its
dominant position in the relevant market, or to exclude competitors in a manner that harms the
competition process.

A company (or group of companies) is said to be dominant if it is so big, or is capable of

controlling the market, that it can act independently or regardless of how other players may act
or react to its actions.

The PCA does not mean to unfairly burden dominant companies. What the law is really
concerned with, and punishes, is abuse of dominant position, not success or bigness.

Abuse of dominant position harms competitors through means such as:

Exploitative behavior towards consumers, customers and/or competitors such as

excessive or unfair purchase/sales prices

Predatory Pricing when the dominant player deliberately incurs losses in the short run by
setting prices so low that it forces one or more undertakings out of the market, so as to be able
to charge higher prices in the long run;

Discriminatory behavior happens when applying dissimilar pricing or conditions to equivalent

transactions; and

Limiting production, markets or technical development to the prejudice of consumers

The PCC can minimize the threat of abuse of dominance by requiring players with dominant
position to comply with rules. These are preventive measures—sometimes referred to as
significant market power (SMP) obligations—to help big businesses avoid anti-competitive
practices, provide safeguards for non-dominant businesses, and ensure that the market remains
competitive.

The Commission can also work with sector regulators to issue rules that promote competition,
protect consumers, and prevent abuse of market power by dominant players within their
respective sectors.

Thus with the increasing use of abuse of dominant position, our implementation of statutory
laws relating to the Competition Act also became relevant.

Therefore, in the market, there should be an equal opportunity and equal opportunity to all who
want to do the business. However, competition should prevail as long as it is healthy and as
long as it helps the entire society to grow.