pHILIPPINE COMPETI Ti9y Act GX RA No. 10667 ACT PROVIDING FOR A NATIONAL comp yROFIBITING ANTI-COMPETITIVE AGREEMENTS oy ace soMINANT POSITION AND ANTI-COMPETITIVE MERGEee oy Oe QUISITIONS, ESTABLISHING THE PHILIPPINE conmersp NS COMMISSION AND APPROPRIATING FUNDS tints jyIRODUCTION ecLARATION OF POLICY theefficiency of market competition as a mechanism for: i cervices 18 2 generally accepted precept. The State pesca rea rreasures undertaken to liberalize key sectors in the economy need Fd rs inforced by measures that safeguard competitive conditions. The State also peognizes that the provision of equal opportunities to all promotes cstrepreneurial spirit, encourages private investments, facilitates technology development and transfer and enhances resource productivity. encumbered market competition also serves the interest of consumers by lowing them to exercise their right of choice over goods and services offered inthe market. Pursuant to the constitutional goals for the national economy to attain a more quitable distribution of opportunities, income, and wealth; a sustained inreasein the amount of goods and services produced by the nation for the ‘enefit of the people; and an expanding productivity as the key to raising the auilty of life for all, especially the underprivileged and the constitutional tandate that the State shall regulate or prohibit monopolies when the public ‘terest so requires and that no combinations in restraint of trade or unfair “ompetition shall be allowed, the State shall:oH Pe Comp a ic tien and promot re a comp Staal enone 2 anon Palit be plemented bythe Gor Mih ‘pipes anda ois Political agency ML tbe Republics Te eentration which will contol the paste epPrevent conor dustry that will unduly sie competes c°. ite constrict the discipline of fee markets; and Neen, mara Son of ant-competiive agreement, abuse of co Pea a ompetive eG a sition ont position and ong consumer welfare and advancing dome Sr a de 7 se eee Polo ee [refers to the Phim, on oy gz eee nears | gat | ee oe ip Lent | maa ci wh eg isa —| operation, produc transom, ide skp amount or soure op Purchases | sxe“ *Y te pe | the ations oF decors a easy agency o otherwise etc, ‘makes, ae eit entities hold why haan AEA be cfercable agaist any tion ent egret | |p” relevant male nde i # cag is Ay and commerce the Republi ofthe Ppp combination of the hte fom any ye ee mera ade vig die, sayy Sepplens ore cup oat wi PEcnecetsntade nt orcmmerintekgags | | ————— a esa Trt Pilippines, including those that result fom acts dove ouside g, [Est proprietorship partment a Baal ale Republica the Philipines: Eom meer Sti cn Ay to the combinatos foreign, including those ovned ce sence Exclusion: This Act shall not apply Ins OF activities of government, rwmed oF controled by the ne veyeet or tr ageements 0 Aangenents wi ga ere deed ee wince 2 eater ations, activities, agreements, or: _ economic activity; - vere when such combinations on snangenns | | ————— tes tothe Paap Wee —— | corte % inrespetotemia, | [it roles to te stip gallo as Bae renployeat. ly Interchangeable o sbsttusbe and te object of compton and the grograpicaea where — Said pods or svios weal DEFINITION OF aa refers othe ong wo omy RS RS existing ena orto fomanewesey “ain [fe He pace of scars or asc Wg) | an mare | refers the mace nih pci aslo ete or ober means, forthe purpowe of danay is sold and wiih os eononee es contol by Product mate nde eat popu: ene | One (1) entity of the whole or part of another; defined as follows: Laid Two @) or more ents over another oF A eleven prod mat comprises se gas ne) or more entities over one (I) or more enti tndlor sevies wich ae epaed ae “gad fers to any type oF form of conta, aragena interchanges cstv th esumer ndertanding, collective | secommendain the custome yan othe pds nde cere ston, wheter fomal or informa xs charac, ek pcs an thir intended tact, writen oro and7m mp 4, evant pographle market compris ia Tah nen concer isivaved nn edema of pods and serves, in pn Seite of competion ae ee fd which ca be | fromogenovs stinger boning areas because the cannes 8 carrion ave dferentin those areas" | | The ysBrTED ACTS PROP wonders Pippine Compson Andale ——~ ampetive Agreements Dominant Position ec AC te Sg Mp pe Ppenin ri apn 31 a eCmTE Hen tomatoe wena err atin fay om ing eg cae ind suppression bid rlaton and mat al see ea pac id lt, a en tern tee oman compe ig elon aly peeing cn Seo sabe pre a ogo onling Con mi te Scape ernest SURE ng te marke wheter by oun ae uy ty a pds ens De en Syne ce 2. geen eran se pei in) nd) ct SeSSnrc ober ss osutaraly preventing gs ‘Sony ometon shalaobe oid Defense: An agreement may not necessarily be deemed a violation ofthis At ifthe wansaction contributes to improving the production or distibutnt goods and services orto promoting technical or economic progres, hit ‘Mowing consumers a fair share ofthe resulting benefits © 4 “amet: Ao ei fe control with smote a, oan, and aenot other RY On. by, Fae pret #43004 eva ht Jester, shall Ot DE Considered compe Porgy MON es _ ISITION ‘tts scion, Rbted for one or more, nts Pose Pe conduct that woul aie dan ‘ ly Free eat in Sn ea at goods oF Sec below co ig ition out of the relevant ajar pO Set » ce on's evaluation ofthis Prod Th SE eision’s ft stalemate Comes havene Such bjt he eget he oxteet or compete with the lower pac af ae ly eet sling the samo OMT gn ae sesing bares 0 ety of Comming aes gn ay smoszowing within the make ian egeoee mes foe at develop the markt tar a gut press BUSES acumen rig gags Befinga transaction subject to acpi ye Maions which, by thelr rare or acerdag Pe th oti connection with the transaction mec wag, 4 fering pices oF other tem oF condom gu Sessonably between customer orselesethe san ng hoe such customers or sles ae cinieapraceg eS Star terms and conditions, where the eet may te ee fempettion substantall: Provide, That te falmog ut Coridered permissible price differentials: G 1 Socialized pricing forthe ls fortunate sor ef ecm, 2 Price eliferential which reasonby or apron wag diferencesin the cost of manufacture sale ordiney ey ditlering methods, technical condition, or quanti nich te goods or services are sold or delivered to thebuyerser stan, 4. Price differential or terme of sale olieed im tapene b te competitive price of payment, services or changes in he ts furnished by a competitor; and 4. Price changes in response to changing. matet cndin marketability of goods or services, or volume;‘ b "hon, , yn the lease or contract for sale . tons o rae posing ere, t0 whom, OF in wha fone ig, ee ld rade, sch Ng Ps, ng py serves ‘uch price, or imposing condi srr rebate upon such ition count genie, where he objet Oetiecf he eset theo Perm of lessen competition substantially: Pr arse prevent in this Ac shal prohibit or renderunaweg, es ere cing, Hoingy CNS meray 1 Remi abtora agreent och as those why pak gpttounsterally terrae the agzeenen op P84 protecting intellectual POPE Eh cngya, ‘Mimo, ortade secrets a cular goods OF Services depende sory of pat Pendent Maing eof other goods or eves fom te sper ‘eth the main goods or services tbe supp ct eomecon eed, ty impeing wy Iw Puce Py yg onsersces of among ters margialzd ape pagy te sta fae tae a sdnaran Bi a a nt ce gece aes aoe a mata minal erate uric re erm re rma Tau Subject to the following 1 ‘Nothing inthis Act shall be construed or interpreted sa prokiiose having + dominant postion in a relevant matket oF on acy Tpaitaiing ad inreasing market share through legitimate mes ‘onotaubstatally prevent, restrict or lessen competition. 2. Any conduct which contbutes to improving produc « ‘istibution of goods oF services within the relevant mae « ‘promoting technical and economic progress while allowing coun ir share ofthe resulting benefit may not necessary become {an abuse of dominant position. wn ng sal ane freB02N8 Shalt cong ste rom pustlng meen ‘ that io “ompetition a od he Srorecomeaon Prelinger ge at eset AND ACQUISITions RS. on shall have the power 1 deemed rele, Peon aby Caso ang AND Acouy TE Cuistion agreements pe red stn Prevent, ratte Ye ompettion i nn mar al may be determined bythe Commie et or oie monn al me rabbis, ON actin oF acquson agreement 2 Meiiton By the Commision whee cy ot when eps lone a — her be 1 Sn concerrton as rougher in effclencies that are reer tha ee eat ns eect ertce eran qutston agreement or fe mero A pry fo the merge or sostenseneti imminent financial fa and epee nh teat compte mene eS es toes or the fling entity's co 4 Ane shall ot be prohtie! fom cat wna thet or other sare atl or ana a ae open hs ora ang Saket shar inareevant ase ooh ma toe te provisions of this Act “* me 4. The aegulsiion of the stock or oe he capil of ove or more cxrporations solely for invest ante ring eenng can and not o otherwise bing host rae ong sa he prevention, restriction or ler of oopetbon nt nit at Stal not be prohibited"Coorong -qreburden of proof for exemptions abovelis wig. a party seeking © rely onthe exemption msgtrate that ifthe agreement were noe ould not be realized, aren of Pro seching te er 1) ato es 10 pean fey Bo Peg, ‘apm Fry of Re ed ator rng sh seerpen sch i {adoration sys om “ras obtained onthe Basis of fraud wr fae, te under this Act fea xy NOTIFICATION Son eget asus aan WH he ig Timmating their agreement until thirty (30) days i in the form and containing the ons issued by the Commission thy : ae mi “specified in the regulatic ‘Moma son shall promulgate other criteria, such a increase “ np emia sa ee se a Se nasal oa pon Wf, neni ranean, Commision shall be considered void ond 2 Sabet the partes to an administrative fine f 1% 15% ofthe ay ‘the transaction. Request for further information; oft: Should the Commision deer ¢ perssary may request further information that ate reasonably ecsy es anelyclevant tothe prohibition under Section 20 (Proitted Maroy 13 Acqustions) from the partis tothe agreement before the exon the tity (0-day period ‘The issuance of such a request has the effect of extending the period wii which the agreement may not be consummated for an additional sy days beginning on the day after the request for information i reid y the parties. Inno case shall the total period for review by the Commis! give fre 7 etn ett lated for whan Pd, ‘he wired approved and the pam emer any, wera orate a Al notices, docu ati ens * ietirom the Commission shat 2 (cor ease of infrmaton cn nc Poa oe ity otis mandatony eye a gy we te our of competent radia Een aan a oding an exchange sie ~ pe requirement of forte ry Fon of banks, Baking ita a oo ona ober Sera Pid other special cone eure oon Ting te Cay 1g of the requirement for af, oe sovernment gency onde ppc cae ct ve Seton 3 ct ye Coren cae ‘aatlewemendstony serena, se pe Set St ne seegeror acquisition isnot violative of this qq?" he pent sg of Notion UE Within the roan Senin determines that such spree forexemption, the Commission may. Pb ad dy hatte implementation spn, “ 1 Ibe implementation ofthe secre tied by changes specified byte Consens ott 1 Fer inion tls a ee etinnt party or parties enter into egal ‘eed by the Commission PY Obiefrom tine a 1 10 tne, a sx tr T Parson Feahold and such other criteria Pang i aeivoti ce oy pid ied merge that ms semion rom he nti rete ne — 3 Bere angen esis en ng ines AND PEN. srnarive FINES: Te Common ying Apart rt 10 targa long " pst agreements fast eninat Postion Fe ey acai Mees nd Astin Fae Merge ar Acgustors peau te fe tn Combine (the vilabon tt, JALTIES ints ee rton tune To COMPLY WITH AN ORDER OF THE Co AE a ing Se Comission sal pay a penalty of P5000 to P20, soni ye Cot ant ply fr ec aye Tei tally complicn. Provided tha thes ines shall only ent resring foysive 4) days from the time that he said dt ruling was received. Tecision, order surm.y OF INCORRECT OR MISLEADING ror ‘Commission may likewise im - rate nny oR sie cca shy thy wre aay Se nen ary document, application ox Other pepe fat etc the Comision or supply incre or mblccng there ian pion fo nding li 2 propos fr nfm proceedings relating to a show cause order, for mt ‘the Commission’ ruling eee ing order or approve asthe cise maybe get ONTOS 8 a 8 vant Povey 00. of Ae pe, ia He Peataeg el the schedule of fines ing Setar recon yy nm see om ny iat PENALTIES: An ta rth any ao ye mse 70 se a 2 ie tt mt hh a ey Fea and den Impey a Spore ees rectors ofthe ny Ya igs rope mos the entities involved "Ped up ren Oe Spall Be imposed ty Mt ee te eet ts ha open row at fe rng 9 Sty ge ,