Philippines: Implemented Competition Act of 2014 (No. 10667) including unilateral conduct regulation

On 8 August 2015, the Competition Act (PCA) of 2014 (No. 10667) including unilateral conduct regulation, was implemented and came into effect. Prohibited unilateral conduct or abuse of dominant position on a market is stipulated in section 15 of the Act. The PCA prohibits entities from abusing their dominant position by engaging in conduct that would substantially prevent, restrict, or lessen competition. Such abuses include selling goods or services below cost with the intent of driving competitors out of the market, unless done in good faith to meet lower prices of competitors. It also includes imposing barriers to entry or engaging in acts that prevent competitors from growing within the market in an anti-competitive manner, except when these barriers arise from superior products, business acumen, or legal rights. Further, making transactions conditional on other obligations that have no connection with the transaction, setting prices or other terms that unreasonably discriminate between customers or sellers of the same goods or services, and imposing restrictions on the lease or sale of goods or services to control where, to whom, or in what forms they may be sold or traded are prohibited if these actions substantially prevent, restrict, or lessen competition. The Act emphasises that having a dominant position is not prohibited if it is acquired or maintained legitimately and does not substantially harm competition. Conduct that improves production or distribution of goods or services, or promotes technical and economic progress while allowing consumers a fair share of the resulting benefit, is not necessarily considered an abuse of dominant position.